NewzIntel.com

Category: FBI

  • MIL-OSI Security: Houston man pleads guilty to “jugging” robbery of ATM technician in Midlothian

    Source: Office of United States Attorneys

    A Houston, Texas man pleaded guilty to the “jugging” robbery of an ATM technician that occurred on July 3, 2024, announced Acting United States Attorney for the Northern District of Texas Chad E. Meacham.  A “jugging” robbery is a type of theft where thieves follow a victim as they service or withdraw cash from ATMs or banks and then rob them.

    In December 2024, Houston residents Johnny Juwan Clark, 32, Corey Dashun Holloway, Tierra Toneisha Brandyberg, and Roosevelt Ford Valentine were charged in a superseding indictment for their roles in a jugging robbery in Midlothian, Texas.  On April 22, 2025, Clark pleaded guilty to interference with commerce by robbery before Senior United States District Judge Barbara M.G. Lynn.  

    Clark, Brandyberg, Holloway, and Roosevelt have been linked to a Houston-based criminal organization called the “Hiram Clarke Money Team.”  HCMT members are known to routinely travel to areas outside of Houston and engage in “jugging” style robberies and other forms of theft.

    Clark admitted that at approximately 5:35 p.m. on July 3, 2024, he approached the ATM technician as he was servicing an ATM at a Chase Bank located in Midlothian, Texas.  Clark was wearing a hoodie and face covering to disguise his appearance.  Clark approached the technician from behind and forced him to the ground.  Clark kept his fist to the back of the victim’s head as cannisters containing United States currency were removed from the ATM by codefendants.  Approximately $247,000 in United States currency was taken during the robbery.  According to court documents, Clark admitted that he was the individual forcing the technician to the ground, captured in a security photo. 
     

    After the robbery, Clark and two of his codefendants fled from the Chase Bank in the rental car and met a fourth accomplice at an apartment complex in close proximity to the bank. The stolen money was loaded into a Range Rover and driven back to Houston, Texas.

    Clark’s sentencing is scheduled for July 28, 2025.  He faces a sentence of up to 20 years in prison and a fine of up to $250,000. Codefendant Tierra Toneisha Brandyberg has filed documents advising the court of her intention to plead guilty.  A rearraignment date for Brandyberg has not been set.  Codefendants Holloway and Valentine are set for jury trial in September 2025.

    The FBI (Dallas Division) investigated the case.  Assistant U.S. Attorney Rick Calvert is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Hillsville Man Arrested for Sexual Exploitation of Children

    Source: Office of United States Attorneys

    Defendant Used Discord to Purchase Sexual Content from at Least Ten Teenage Girls

    ROANOKE, Va. – Michael Tibbs, 24, of Carroll County, Virginia, was arrested by FBI agents last week on a criminal complaint charging him with sexual exploitation of children. Earlier this week, Tibbs appeared before a U.S. magistrate judge who ordered him detained without bond.

    Based on evidence presented at Tibbs’ detention hearing, in April 2023, a then-15-year-old minor victim submitted a tip to the FBI’s National Threat Operations Center, reporting that a man had been grooming her for approximately one year and continually requesting nude images.

    FBI agents identified Tibbs as the victim’s groomer and obtained records of his Discord messages.  The Discord records revealed that beginning as early as November 2022, Tibbs engaged in sexual chats with several minor girls and paid them to record and send him sexually explicit images and videos. Agents were able to identify and interview some of the minor victims, who confirmed that Tibbs paid them to record sexually explicit content for him.

    On July 18, 2024, agents executed a search warrant at Tibbs’ home and seized his phone, which contained many sexually explicit images and videos of women with indeterminate ages. Agents were able to identify one of the minor victims, 13 years old, depicted in two of those videos.  Tibbs’ phone also held hundreds of computer-generated and animated images of children, including toddlers, being graphically, sexually abused.

    Agents interviewed Tibbs, who admitted to using Discord to purchase sexual content from minors.  He estimated that he purchased from 10 to 15 underage girls.  Tibbs explained that he developed an interest in purchasing sexual content from minors after viewing child pornography on TikTok.

    Acting U.S. Attorney Zachary T. Lee and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.

    The Federal Bureau of Investigation is investigating the case.

    Assistant U.S. Attorney Drew Inman is prosecuting the case.

    The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

    A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: The FBI Released Its Internet Crime Report 2024

    Source: Federal Bureau of Investigation FBI Crime News (b)

    TLANTA—The FBI released its Internet Crime Report 2024. It shows Internet-related complaints and crimes continued to increase significantly in Georgia and across the country.

    In 2024, the FBI’s Internet Crime Complaint Center (IC3) received 859,532 complaints with related losses topping $16.6 billion. That is a 33% increase in losses from 2023.

    Georgia ranked 11th in complaints filed by state in 2024 (13th in 2023) with reported potential losses at $420 million. That is a 40% increase year to year.

    Nationally, the top three cybercrimes, by the number of complaints reported in 2024, were: phishing/spoofing, extortion, and personal data breaches. In terms of losses, cryptocurrency-related losses by far exceed any other category.

    “While the top threats facing Georgia and the nation from cyber criminals and fraudsters continue to evolve, their main goal remains stealing your hard-earned money,” said FBI Atlanta Special Agent in Charge Paul Brown. “The cornerstone of the FBI’s mission remains to protect American citizens. The men and women of FBI Atlanta will not stop working to prevent losses and minimize the harm to Georgia residents.”

    Criminals continue to target the elderly (Age 60+) at a high rate. In Georgia, complaints by seniors increased 71% year over year (2114 to 3622). Reported losses in Georgia by seniors increased 89% ($92 million in 2023 to $174 million in 2024). Georgia’s rank in reported losses by state rose from 10th to 7th.

    Reports of cryptocurrency-related crimes jumped in Georgia by 122% (1590 in 2023 to 3533 in 2024). Estimated losses to cryptocurrency-related crimes in the state increased by 66 % ($118,750,468 in 2023 to $197,647,537 in 2024).

    The 2024 IC3 annual report can be found at IC3.gov.

    In the fight against increasingly savvy criminals, the FBI also relies on you. Without the information you report to us through IC3, we simply cannot piece together the puzzle of this ever-shifting threat landscape. If ever you suspect you’re a victim of cyber-enabled crime, do not hesitate to let us know. We want to be there for you, and what you report will help us help others.

    MIL Security OSI –

  • MIL-OSI: Šiaulių Bankas Invitation to Q1 2025 Financial Results webinar

    Source: GlobeNewswire (MIL-OSI)

    Šiaulių Bankas (SAB1L) invites shareholders, investors, analysts and other stakeholders to join its Investors Webinar for Q1 2025 Financial Results and highlights scheduled on 29 April, 2025 at 8:30 am (EEST). The presentation will be held online in English.

    The webinar will be hosted by Vytautas Sinius, CEO, Tomas Varenbergas, Head of Investment Management Division, Chief Economist Indrė Genytė–Pikčienė and Tautvydas Mėdžius, Strategy Partner, who will discuss the bank’s financial results for the first quarter of 2025, recent developments, and will take questions from participants.

    Please send your questions in advance to investors@sb.lt   

    The Q1 2025 results will be announced in advance on 28 April after trading hours.

    How to join the webinar?

    To join the webinar, please register via following link https://sb.zoomtv.lt. After successful registration You will be provided with the webinar link. The webinar will be recorded and available online for everyone at Šiaulių Bankas website www.sb.lt/en/investors 

    Additional information:
    Tomas Varenbergas
    Head of Investment Management Division
    tomas.varenbergas@sb.lt, +370 610 44447  

    The MIL Network –

  • MIL-OSI Security: Retired Police Officer Sentenced to 60 Months in Federal Prison for Obstructing Justice

    Source: Office of United States Attorneys

    Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant, John T. Mantanona, age 67, was sentenced by designated Senior District Judge John C. Coughenour in the District Court of Guam to 60 months imprisonment for Obstructing Justice by Endeavoring to Influence a Juror, in violation of 18 U.S.C. § 1503.  The Court also ordered two years of supervised release, a $30,000 fine, and a mandatory $100 special assessment fee.

    From October 12, 2018, through November 13, 2018, Chief Judge Frances Tydingco-Gatewood conducted a federal jury trial in the criminal case of United States v. Raymond Martinez and Juanita Moser, 15-CR-00031.  Mantanona was retired from the Guam Police Department, including work as an FBI task force officer.  Martinez and Moser hired him as an investigator during the trial.  Mantanona tried to influence Gregorio Tyquiengco while Tyquiengco served as a juror in the case.  During the trial, and prior to jury deliberations, Mantanona contacted Tyquiengco to discuss what verdict Tyquiengco would render and to influence him to vote “NG” (not guilty) despite the evidence against Martinez and Moser.  Mantanona also wanted Tyquiengco to persuade other jurors to do the same, with the intent to cause a hung jury and mistrial.  A mistrial was declared on November 13, 2018.  Mantanona met with Tyquiengco and gave him $1,000, in addition to $100 afterward.

    Tyquiengco pled guilty to Contempt of Court, in violation of 18 U.S.C. § 401(3).  He was sentenced to 30 days imprisonment and one year of supervised release. Tyquiengco was also ordered to reimburse the district court for any money he received for serving as a federal juror.

    William Topasna Mantanona pled guilty to False Statement to Government Agent, in violation of 18 U.S.C. § 1001(a)(2). During a wiretapped telephone conversation, he communicated with his brother, John T. Mantanona, to facilitate the above-described scheme.  He later falsely denied this conduct during an investigative interview with a special agent from Homeland Security Investigations.  On August 26, 2021, the district court sentenced William Topasna Mantanona to six months imprisonment, two years of supervised release, and a mandatory $5,000 fine.

    “The public should have faith in our justice system, which includes fair and impartial court proceedings.  Mantanona violated this fundamental concept of trial by jury.  The Department of Justice will hold accountable those who obstruct justice,” stated United States Attorney Anderson.   “I applaud our law enforcement partners for pursuing an investigation beyond the initial crimes by Martinez and Moser.”

    “Great trust is placed in those who call law enforcement their mission,” said Homeland Security Investigations Hawaii Special Agent in Charge Lucy Cabral-DeArmas. “Violating that trust by working to dilute the integrity of our judicial process is a complete betrayal of that mission and brings down every person who seeks to serve the public.  This sentence sends a clear message to those currently in or retired from law enforcement that if you break that trust, there will be consequences.”

    “The FBI’s anti-corruption work remains one of our highest priorities. Those who criminally influence jurors and their deliberations through bribery strike at the very foundation of our criminal justice system,” said FBI Honolulu Special Agent in Charge David Porter. “Mr. Mantanona tampered with the integrity of our legal process, and in so doing, attempted to deny our community the justice it deserves. As reflected by this investigation, the FBI is committed to protecting our legal system and will bring to justice those who act to corrupt it.”

    The case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant United States Attorney Rosetta L. San Nicolas in the District of Guam.

    MIL Security OSI –

  • MIL-OSI Security: California Man Faces Federal Charges for Cyberstalking Ex-Girlfriend

    Source: Office of United States Attorneys

    PORTLAND, Ore.—A Granite Bay, California man was arrested and appeared in federal court Tuesday after he was indicted in Oregon for cyberstalking his ex-girlfriend and posting sexually explicit photos online.

    Jason David Campos, 42, has been charged with stalking, wire fraud, and aggravated identity theft.

    According to court documents, between 2009 and 2023, Campos is alleged to have stalked and harassed the victim, a former intimate partner, by posting sexually explicit images and personal information online using social media platforms and public forum websites. 

    In May 2007, while still in the relationship, Campos told the victim that the laptop containing the sexually explicit images had been stolen from his vehicle. Campos and the victim ended their relationship in 2008.

    The following year, the victim searched her name online and discovered that sexually explicit images, taken by Campos during their relationship, had been posted to Facebook, Craigslist, Classmates.com, in sex ads, and a Swedish website, without the victim’s consent. Campos used the victim’s name, including her maiden name, to create accounts on several social media platforms and public forum websites. Over the next 14 years, Campos used these accounts to publish sexually explicit images of the victim online. In numerous instances, Campos asked viewers to contact the victim directly and shared her personal information in order to further harass the victim.

    On July 16, 2021, Campos is further alleged to have created an email account using the victim’s name, which he used to contact the victim’s attorney in Oregon. Posing as the victim, Campos requested the client file which contained personal information including the victim’s address and information about a child. After obtaining the file, Campos contacted the victim directly.

    On January 23, 2022, the victim received an email from an account later linked to Campos, in which he referred to the child by name and asked if the victim was the child’s mother. Additionally, Campos used the email account to post several sexually explicit images of the victim to an online message board. He asked viewers to print the images and post them around a neighborhood in Oregon that the victim was residing in at the time.

    Campos was arrested in Granite Bay and made his initial appearance in federal court Tuesday before a U.S. Magistrate Judge in Sacramento, California. He was arraigned, pleaded not guilty, and ordered detained pending further court proceedings.

    If convicted, Campos faces a maximum sentence of 20 years in federal prison, three years’ supervised release, and a fine of $250,000 for wire fraud, a maximum sentence of five years in federal prison, three years’ supervised release, and a fine of $250,000 for stalking, and a mandatory minimum sentence of two years in federal prison, one year of supervised release, and a fine of $250,000 for aggravated identity theft.

    The case is being investigated by the FBI and is being prosecuted by Gregory R. Nyhus and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.

    An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Former Clerk/Treasurer for Lewis County town charged federally with wire fraud for more than $930,000 in theft

    Source: Office of United States Attorneys

    Seattle – The former Clerk-Treasurer for the City of Morton in Lewis County is now charged federally with wire fraud in connection with her nine-year scheme to steal nearly $1 million from city coffers, announced Acting U.S. Attorney Teal Luthy Miller. Tamara (Tammy) Clevenger served as the Clerk-Treasurer for Morton from 2012-2022. In 2024, an audit by the Washington State Auditor uncovered years of embezzlement totaling $937,584. Clevenger is expected to enter a plea to the wire fraud charge next month.

    “I commend the State Auditor’s Office for their good work on this case,” said Acting U.S. Attorney Miller. “It is critical that all of our government entities have multiple safeguards in place to prevent the theft of hard-earned taxpayer dollars.”

    According to the charging information, Clevenger allegedly used a variety of ways to steal funds. Between November 2015 and December 2021, she stole at least $311,727 of cash that citizens had brought in to pay for city services. In some instances, she would write a check from one city account to another to conceal the theft of the cash. She also made unauthorized cash withdrawals with the Morton ATM card.

    Between February 2013 and December 2021, Clevenger allegedly stole at least $625,857 by writing checks to herself and depositing them in her bank account. Clevenger would allegedly use checks that had been pre-signed by the mayor for use in emergency situations. Clevenger allegedly used fake vendor invoices to make it appear the checks had been written for a service rendered to the city. Clevenger’s actions used interstate wires to commit the fraud with the transfer of funds between various bank accounts. One example is the transfer of $5,808 in funds from Washington to Umpqua bank servers located outside the state.

    Following the audit, the City of Morton established new procedures so that no single person had control of the various banking functions.

    The FBI and IRS worked with the Washington State Auditor’s Office on the criminal financial investigation.

    The charges contained in the information are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. However, use of a criminal information, the sworn statement of the prosecutor, is an indication that there have been discussions with the defendant and their counsel of an agreement to resolve the case.

    Wire fraud is punishable by up to twenty years in prison.

    The case is being prosecuted by Assistant United States Attorney Amanda McDowell. 

    MIL Security OSI –

  • MIL-OSI Security: Mexican National Sentenced to Eight Years in Prison After Attempting to Traffic Over 38 Kilos of Methamphetamine in Utah

    Source: Office of United States Attorneys

    SALT LAKE CITY, Utah – Fermin Castro-Tovar, 26, a Mexican national, living in the United States illegally, was sentenced to 96 months’ imprisonment and three years’ supervised release, after he attempted to traffic over 38,000 grams of methamphetamine in the District of Utah and distributed approximately one pound of meth to undercover agents.

    The sentence, imposed by Senior U.S District Court Judge Ted Stewart comes after Castro-Tovar pleaded guilty on January 14, 2025, to possession of methamphetamine with intent to distribute.

    According to court documents and statements made at Castro-Tovar’s change of plea and sentencing hearings, in May 2024, Castro-Tovar sold methamphetamine during a controlled purchase to agents with the Wasatch Metro Drug Task Force. On May 30, 2024, law enforcement seized 24,020 grams of methamphetamine at a storage unit associated to him. At Castro Tovar’s residence, agents seized approximately 3,401 grams of methamphetamine. At an apartment associated to Tovar, agents seized three additional bags of methamphetamine weighing approximately 4,388 grams, 4,139 grams and 2,890 grams. In total, Castro-Tovar possessed and intended to distribute 38,838 grams of methamphetamine. See prior release: Foreign National Accused of Attempting to Traffic Over 38 Kilos of Methamphetamine in Utah.

    “Stopping deadly drugs from being distributed throughout our communities is a priority,” said Acting U.S. Attorney Felice John Viti of the District of Utah. “We will continue to work with our state, local and federal partners to dismantle organizations that bring drugs into our country and threaten community safety.”

    “The amount of methamphetamine in this case potentially amounts to hundreds of thousands of doses,” said Special Agent in Charge Mehtab Syed of the Salt Lake City FBI. “Illicit drugs have devastated too many lives in Utah. Public safety is at the forefront of everything we do, and the FBI’s Wasatch Metro Drug Task Force will use every resource available to cut the supply at the highest levels.”

    The case was investigated by the Wasatch Metro Drug Task Force, consisting of the FBI and the Davis Metro Narcotic Strike Force.

    Assistant United States Attorney Seth Nielson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.  For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
     

    MIL Security OSI –

  • MIL-OSI Security: Hattiesburg Man Sentenced to Nearly Three Years in Prison for Possession of a Firearm by a Convicted Felon

    Source: Office of United States Attorneys

    Hattiesburg, MS – A Hattiesburg man was sentenced to 35 months in prison for possession of a firearm by a convicted felon.

    According to court documents, Scotty James Conley, 40, of was found by the Forrest County Sheriff’s Office to be in possession of a firearm after responding to a complaint of a residential disturbance. Conley has a prior felony conviction from 2008 for sexual battery of a minor under 14 years of age. As a convicted felon he is prohibited by federal law from possessing a firearm or ammunition.

    Conley was indicted by a federal grand jury on January 10, 2023. He pled guilty on January 27, 2025.

    Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.

    The FBI and Forrest County Sheriff’s Office investigated the case.

    Assistant U.S. Attorney Matt Allen prosecuted the case.

    This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

  • MIL-OSI Security: Memphis Woman Sentenced in Healthcare Fraud Scheme and Schemes to Defraud COVID-19 Relief Program

    Source: Office of United States Attorneys

    Memphis, TN – A federal judge has sentenced Nakita Cannady, 49, to 14 months in federal prison to be followed by two years of supervised release for healthcare fraud and making false statements in connection with loan applications for the Covid-19 Relief Program.  The final sentencing hearing was concluded on April 4, 2025, with the entry of an order by Senior United States District Judge John T. Fowlkes, Jr. directing the defendant to pay more than $500,000.00 dollars in restitution to the victims.  Joseph C. Murphy, Jr., Interim United States Attorney for the Western District of Tennessee, announced the sentence today.

    According to the original federal indictment in the healthcare fraud case, Cannady owned and operated What About Us In-Home Healthcare, a home healthcare services business that purported to provide custodial healthcare services 24-hours a day, 7 days a week to mostly elderly patients. From May 29, 2017 through December 23, 2019, Cannady fraudulently billed Cigna Insurance for 24 hours a day of home healthcare when she knew the patients had only received 8 or 12 hours a day of home healthcare. Cannady was ordered to make restitution to Cigna Insurance in the amount of $193,508.10.

    According to the second federal indictment, from June 17, 2020 through April 15, 2021, Cannady submitted six fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications for four purported businesses she controlled, specifically: What About Us Childcare, What About Us Foundation, What About Us Adult Daycare, and What About Us In-Home Healthcare. Cannady’s loan applications contained false information concerning the dates of operation, gross revenues, costs of goods sold, number of employees, and amount of payroll related to the businesses. Cannady was ordered to make restitution to the Small Business Administration in the amount of $346,882.13.   

    “Those who exploit health care programs for personal gain will be held accountable to the fullest extent of the law,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) Nashville Field Office. “Health care fraud is a priority for the FBI, and we will continue to work with our partners to investigate those who prioritize greed over the well-being of others.”

    Interim United States Attorney Joseph C. Murphy, Jr. and Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the United States. Assistant United States Attorney Christopher Cotten and former Assistant United States Attorneys Courtney Lewis and Murrell Foster also assisted in the prosecution of this case.  The FBI Nashville Field Office – Memphis Resident Agency and the Tennessee Bureau of Investigation investigated this case.

    ###

    For more information, please contact the media relations team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

    MIL Security OSI –

  • MIL-OSI Security: Three Members of the Highs Street Gang Convicted of RICO Conspiracy and Premeditated Murder

    Source: Office of United States Attorneys

    MINNEAPOLIS – Following a three-week trial, a federal jury in Minneapolis convicted three Minnesota men today of RICO Conspiracy and Premediated Murder for their involvement in the violent Minneapolis criminal street gang known as the Highs and the August 7, 2021, gang-related murder of Darryl Wells.

    “Minneapolis criminal street gangs have inflicted devastating harm on our community for far too long.  Three years ago, the U.S. Attorney’s Office announced our federal violent crime initiative to address the skyrocketing and completely unacceptable rates of violent crime in Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “Since then, we have brought large RICO cases against three criminal street gangs—charging them as the violent enterprises they are.  Make no mistake:  we will not stop.  Criminal street gangs in Minneapolis will continue to see federal justice.  The citizens of Minnesota—the many victims of these crimes—deserve no less.”

    “These defendants participated in a senseless murder and other acts of violence that terrorized their community,” said Matthew R. Galeotti, Head of the Department’s Criminal Division. “Today’s conviction holds accountable members of a violent gang and shows the Department’s commitment to hold accountable criminal enterprises that use murder and intimidation to exert power. We remain steadfast in our commitment to dismantle violent gangs and secure justice for the victims and their loved ones.”

    “This was cold-blooded, calculated violence meant to control through fear,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “They believed violence gave them power — but today’s conviction proves that justice is stronger. The FBI, together with our law enforcement partners, are committed to dismantling these criminal enterprises and holding violent offenders accountable.”

    “Today’s conviction sends a strong message that violent street gangs will not be tolerated in our communities,” said Special Agent in Charge Travis Riddle, of the ATF St. Paul Field Division. “Through the power of the RICO statute, ATF agents, in partnership with federal, state, and local law enforcement, have been able to target the violent criminal activity of the Highs gang. This conviction is a direct result of the tireless work by our agents who are committed to dismantling these criminal organizations and ensuring that those who use violence to control neighborhoods are held accountable. ATF will continue to lead efforts to take down street gangs and protect the citizens of Minneapolis.”

    “Minneapolis has seen a significant drop in violent crime, especially gun violence, thanks to the outstanding work of MPD officers and our law enforcement partners. Most notably, the U.S. Attorney’s Office has been instrumental in helping us target the small number of individuals driving violence, without causing harm to the broader communities we serve.  Together, we’re not just reducing crime — we’re rebuilding trust,” said Minneapolis Police Chief Brian O’Hara.

    “Today’s verdict marks a decisive victory in the fight against violent criminal organizations,” said Ramsey E. Covington, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Reducing violence in this community has required a change in tactics and IRS Criminal Investigation special agents are perfectly poised to support our law enforcement partners in this effort. Our agents will continue to apply their financial expertise and investigative skills to bring justice to those who endanger our communities and threaten our way of life.”

    According to court documents and evidence presented at trial, Keon Pruitt, 22, Dantrell Johnson, 32, and Gregory Hamilton, 29, each of Minneapolis, were all members of various “cliques” or subsets, of the Highs—a criminal enterprise that controlled territory north of West Broadway Avenue in Minneapolis. Evidence at trial proved that members of the Highs committed murders, narcotics trafficking, weapons violations, burglaries, assaults, and robberies on behalf of the enterprise.  As members of the Highs, the defendants were expected to retaliate against the rival Lows gang, which operated south of West Broadway Avenue.

    Evidence produced at trial showed that, on August 7, 2021, a prominent Highs member was shot and killed by a Lows member at the Winner gas station, a Highs hangout.  The following day, August 8, 2021, Highs members organized a memorial for the deceased member at the gas staF. App’x tion, where they distributed firearms and encouraged one another to retaliate against Lows members for the murder.  Defendants Pruitt, Johnson, and Hamilton were all in attendance at the memorial.

    Later that day, Johnson and Hamilton drove to a Lows hangout—Wally’s Foods—and shot a Lows associate, who survived his injuries. Approximately two hours later, Johnson, Hamilton, and Pruitt drove to Skyline Market, another known Lows hangout, to shoot another Lows member. They mistakenly believed Darryl Wells was a Lows member and the store’s cameras captured them shooting Wells inside the store. Wells ran from the store and into the street. Pruitt, who was driving two juveniles in a stolen Porsche, let the juveniles out of the car. They then chased Wells into a nearby alley and fired additional shots at him. All told, Wells was shot at least eight times.

    The jury convicted Pruitt, Johnson, and Hamilton of Racketeering Influenced and Corrupt Organizations (RICO) Conspiracy and Using a Firearm to Cause Death. Each defendant faces a maximum penalty of life in prison. Their sentencing hearings will be scheduled in the near future.

    This is the first of several trials in this case, which charged a total of 28 defendants with RICO Conspiracy, narcotics trafficking, firearms offenses, and other charges related to their activities as members and associates of the Highs gang.  Sixteen defendants are pending trial.

    The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the cases, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control. Assistant U.S. Attorneys Thomas Lopez-Calhoun, Albania Concepcion, and Rebecca Kline of the District of Minnesota, and Trial Attorney Brian Lynch of the Justice Department’s Violent Crime & Racketeering Section, tried this case. Assistant U.S. Attorneys Carla Baumel and Trial Attorney Alyssa Levey-Weinstein also worked on the investigation and trial. 

    MIL Security OSI –

  • MIL-OSI Security: Maryland Man Admits to Leading Drug Trafficking Operation in Eastern Panhandle

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    ELKINS, WEST VIRGINIA – Lenin Erasmo Luna Mota, 52, of Hagerstown, Maryland, has admitted to leading a drug trafficking organization that sold large quantities of fentanyl, heroin, and cocaine in Berkeley County.

    According to court documents and statements made in court, Luna Mota, also known as “Papi,” was one of the leaders of the drug trafficking conspiracy, using his business located in Hagerstown, Maryland, as a central hub for the drug sales.

    Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.

    The FBI; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (agencies included are the West Virginia State Police, Berkeley County Sheriff’s Department, Jefferson County Sherriff’s Department, Ranson Police Department, Charles Town Police Department, and Martinsburg City Police Department); West Virginia State Police; U.S. Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the  U.S. Attorney’s Office for the District of Maryland;  and the U.S. Attorney’s Office for the Middle District of Pennsylvania investigated.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    U.S. Magistrate Judge Michael John Aloi presided.

    MIL Security OSI –

  • MIL-OSI USA: High-Ranking Tren de Aragua Member in Custody on Terrorism and International Drug Distribution Charges

    Source: US State of North Dakota

    A five-count superseding indictment has been unsealed today charging a Venezuelan national and alleged high-ranking member of the designated foreign terrorist organization Tren de Aragua (TdA).  

    Jose Enrique Martinez Flores also known as “Chuqui,” 24, is charged in the Southern District of Texas (SDTX) with conspiring to provide and providing material support to a designated foreign terrorist organization as well as conspiracy and distribution of cocaine in Colombia intended for distribution in the United States.

    “TdA is not a street gang – it is a highly structured terrorist organization that put down roots in our country during the prior administration,” said Attorney General Pamela Bondi. “Today’s charges represent an inflection point in how this Department of Justice will prosecute and ultimately dismantle this evil organization, which has destroyed American families and poisoned our communities.”

    “For the past few years, foreign gangs like TdA have more or less been able to enter the country with impunity, coming here to distribute deadly drugs and terrorize American citizens,” said U.S. Attorney Nicholas J. Ganjei for the SDTX. “That ends now. This Department of Justice is committed to uprooting this terrorist gang, dismantling its criminal operations, and either imprisoning its members or removing them from the country. SDTX is proud to lead this fight.”

    “TdA is a direct threat to our national security, to our communities, and to Americans,” said FBI Director Kash Patel. “Together with our law enforcement partners, the FBI continues in our pursuit to eliminate this violent terrorist organization from our streets, and today’s announcement makes it clear that these criminals, especially the leaders of these cartels, have no place in our country.”

    “This joint Drug Enforcement Administration (DEA)-FBI operation — alongside partners in the United States and Colombia — is further evidence that we must continue to focus our efforts on members of TdA who continue to pump poison into our communities,” said DEA Acting Administrator Derek Maltz. “This is another example of DEA’s tenacity to hunt these networks down, wherever they operate, and crush their evil grip on American lives.”

    Colombian authorities arrested Flores in Colombia March 31 pursuant to a provisional arrest warrant the United States had requested. He remains in custody in Colombia pending further proceedings. 

    A federal grand jury in Houston returned the superseding indictment April 8. 

    According to the allegations, Flores is charged with one count of conspiring to provide material support to TdA in the form of personnel (including himself) and services and one count of providing material support to TdA. The indictment also alleges one count of international drug distribution conspiracy based on his involvement in the distribution of five kilograms of cocaine or more, and two substantive counts of international drug distribution.

    The Department of State designated TdA as a foreign terrorist organization and Specially Designated Global Terrorist Feb. 20. 

    According to information presented to the court, Flores is a high-ranking TdA leader in Bogota, Colombia, and is part of the inner circle of senior TdA leadership.

    Flores also allegedly caused the delivery of approximately five kilograms or more of cocaine for international distribution, proceeds that were used to further TdA’s criminal goals. 

    If convicted, he faces a maximum penalty of life in prison and a $10 million fine. 

    The FBI Houston Field Office and DEA conducted the investigation with the assistance of the Houston Police Department, the Harris County Sheriff’s Office, Colombian National Police and the Colombian Attorney General’s Office (Fiscalía General de la Nación). The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance. 

    Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz of the SDTX are prosecuting the case along with Deputy Director David C. Smith from the Department of Justice’s Joint Task Force Vulcan (JTFV). 

    JTFV was created in 2019 to eradicate MS-13 and now expanded to target TdA and is comprised of U.S. Attorney’s Offices across the country. Those include SDTX; Southern and Eastern Districts of New York; Northern District of Ohio; Districts of New Jersey, Utah, Massachusetts, Nevada and Alaska; Eastern District of Texas; Southern District of Florida; Eastern District of Virginia; Southern District of California; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Bureau of Alcohol, Tobacco, Forearms and Explosives; U.S. Marshals Service; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

    This case is also a part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

     

    MIL OSI USA News –

  • MIL-OSI Security: High-Ranking Tren de Aragua Member in Custody on Terrorism and International Drug Distribution Charges

    Source: Office of United States Attorneys

    A five-count superseding indictment has been unsealed today charging a Venezuelan national and alleged high-ranking member of the designated foreign terrorist organization Tren de Aragua (TdA).  

    Jose Enrique Martinez Flores also known as “Chuqui,” 24, is charged in the Southern District of Texas (SDTX) with conspiring to provide and providing material support to a designated foreign terrorist organization as well as conspiracy and distribution of cocaine in Colombia intended for distribution in the United States.

    “TdA is not a street gang – it is a highly structured terrorist organization that put down roots in our country during the prior administration,” said Attorney General Pamela Bondi. “Today’s charges represent an inflection point in how this Department of Justice will prosecute and ultimately dismantle this evil organization, which has destroyed American families and poisoned our communities.”

    “For the past few years, foreign gangs like TdA have more or less been able to enter the country with impunity, coming here to distribute deadly drugs and terrorize American citizens,” said U.S. Attorney Nicholas J. Ganjei for the SDTX. “That ends now. This Department of Justice is committed to uprooting this terrorist gang, dismantling its criminal operations, and either imprisoning its members or removing them from the country. SDTX is proud to lead this fight.”

    “TdA is a direct threat to our national security, to our communities, and to Americans,” said FBI Director Kash Patel. “Together with our law enforcement partners, the FBI continues in our pursuit to eliminate this violent terrorist organization from our streets, and today’s announcement makes it clear that these criminals, especially the leaders of these cartels, have no place in our country.”

    “This joint Drug Enforcement Administration (DEA)-FBI operation — alongside partners in the United States and Colombia — is further evidence that we must continue to focus our efforts on members of TdA who continue to pump poison into our communities,” said DEA Acting Administrator Derek Maltz. “This is another example of DEA’s tenacity to hunt these networks down, wherever they operate, and crush their evil grip on American lives.”

    Colombian authorities arrested Flores in Colombia March 31 pursuant to a provisional arrest warrant the United States had requested. He remains in custody in Colombia pending further proceedings. 

    A federal grand jury in Houston returned the superseding indictment April 8. 

    According to the allegations, Flores is charged with one count of conspiring to provide material support to TdA in the form of personnel (including himself) and services and one count of providing material support to TdA. The indictment also alleges one count of international drug distribution conspiracy based on his involvement in the distribution of five kilograms of cocaine or more, and two substantive counts of international drug distribution.

    The Department of State designated TdA as a foreign terrorist organization and Specially Designated Global Terrorist Feb. 20. 

    According to information presented to the court, Flores is a high-ranking TdA leader in Bogota, Colombia, and is part of the inner circle of senior TdA leadership.

    Flores also allegedly caused the delivery of approximately five kilograms or more of cocaine for international distribution, proceeds that were used to further TdA’s criminal goals. 

    If convicted, he faces a maximum penalty of life in prison and a $10 million fine. 

    The FBI Houston Field Office and DEA conducted the investigation with the assistance of the Houston Police Department, the Harris County Sheriff’s Office, Colombian National Police and the Colombian Attorney General’s Office (Fiscalía General de la Nación). The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance. 

    Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz of the SDTX are prosecuting the case along with Deputy Director David C. Smith from the Department of Justice’s Joint Task Force Vulcan (JTFV). 

    JTFV was created in 2019 to eradicate MS-13 and now expanded to target TdA and is comprised of U.S. Attorney’s Offices across the country. Those include SDTX; Southern and Eastern Districts of New York; Northern District of Ohio; Districts of New Jersey, Utah, Massachusetts, Nevada and Alaska; Eastern District of Texas; Southern District of Florida; Eastern District of Virginia; Southern District of California; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Bureau of Alcohol, Tobacco, Forearms and Explosives; U.S. Marshals Service; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

    This case is also a part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

     

    MIL Security OSI –

  • MIL-OSI Security: Pontiac Man Pleads Guilty in $4M Identity Theft and Unemployment Fraud Case

    Source: Office of United States Attorneys

    DETROIT – A Pontiac man has pleaded guilty to committing aggravated identity theft and wire fraud as part of large-scale, multi-state Unemployment Insurance benefit fraud scheme in which he and co-conspirators fraudulently obtained debit cards loaded with more than $4 million in Pandemic Unemployment Assistance funds, Acting United States Attorney Julie A. Beck announced today.

    Joining in the announcement were Megan Howell, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Division, Charles Miller, Special Agent-in-Charge, Internal Revenue Service – Criminal Investigations, Douglas Zloto, Special Agent-in-Charge, U.S. Secret Service, Sean McStravick, Acting Inspector-in-Charge, U.S. Postal Service, Office of Inspector General, and Director Jason Palmer, State of Michigan Unemployment Insurance Agency.

    Terrance Calhoun, Jr., 36, of Pontiac, Michigan, pleaded guilty to committing aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and to possessing 15 or more unauthorized access devices, all in relation to acts of unemployment insurance fraud.

    According to his plea agreement, Calhoun Jr., and others, used stolen personal identification and filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Arizona, and Maryland over a six-month period in the names of other individuals without their knowledge or consent. Those false claims resulted in hundreds of debit cards loaded with over $4 million in unemployment insurance funds being mailed to addresses controlled by Calhoun Jr. and his co-conspirators. Roughly $1.6 million dollars in purchases and cash withdrawals were then successfully made from the cards.

    As described within a prior complaint, when agents executed search warrants at the principal mailing addresses used for the fraudulent unemployment insurance benefit claims, including the residence of Calhoun Jr., agents seized numerous documents containing the personal identification information of other individuals, multiple debit cards in the names of numerous other individuals, and firearms.

    Calhoun now faces a possible sentence of up to 20-years’ imprisonment for each of the wire fraud counts to which he has pleaded guilty, a possible sentence of up to 10-years’ imprisonment for possessing 15 or more unauthorized access devices, and a mandatorily consecutive 2-year sentence for the aggravated identity theft charge to which he has pleaded guilty.

    Sentencing is set for August 27, 2025 before United States District Court Judge Judith E. Levy.

    “Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance,” said Acting US Attorney Beck.  “These charges reflect our office’s ongoing commitment to the community by investigating such schemes and bringing those who commit these crimes to justice.”

    “Terrance Calhoun Jr and his co-conspirators engaged in a scheme to defraud state workforce agencies in Michigan, Arizona, and Maryland by filing hundreds of fraudulent unemployment insurance (UI) claims.  As a result, Calhoun enriched himself by stealing taxpayer resources intended for unemployed American workers.  We will continue to work with our law enforcement partners to protect the integrity of the UI program from those who seek to exploit it,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    “Individuals who commit identity theft and unemployment insurance fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation (IRS-CI).  “Terrance Calhoun, Jr. and Jermaine Arnett demonstrated a blatant disregard of the integrity of the multiple states’ unemployment insurance systems and caused immeasurable hardship to innocent victims. IRS-CI remains committed to the pursuit of identity theft and financial fraud, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar crimes accountable.”

    “The FBI in Michigan, alongside our law enforcement partners, remains steadfast in protecting the community and investigating individuals who violate federal law,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “Today’s guilty plea by Terrance Calhoun, whose involvement in a multi-state fraud scheme, is a clear reminder that bad actors will be stopped, and we will ensure integrity will prevail.”

    The case was jointly investigated by agents from the Department of Labor Office of the Inspector General, the Internal Revenue Service – Criminal Investigations Division, the Federal Bureau of Investigation, the Bureau of Immigration and Customs Enforcement, the United States Secret Service, the United States Postal Service Office of the Inspector General, and the State of Michigan -Unemployment Insurance Agency. The case is being prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan.

    MIL Security OSI –

  • MIL-OSI Security: FBI Joint Terrorism Task Force Turns 45 – Dallas Division Reflects on Past Success, Continues Vigilance

    Source: Office of United States Attorneys

    DALLAS – This week, Special Agent in Charge (SAC) R. Joseph Rothrock is joining FBI offices around the country in marking the 45th anniversary of the FBI’s first Joint Terrorism Task Force (JTTF). Formed in New York in 1980, the first JTTF became a model for law enforcement cooperation across the nation.

    JTTFs can be found at each of the FBI’s 55 field offices and many resident agencies—around 280 locations in all. The Dallas Field Office organized the North Texas JTTF in 1995 and it is comprised of dozens of investigative personnel from more than 20 agencies across the Division’s territory.

    JTTFs gather trained investigators, intelligence analysts, linguists, and tactical experts from federal, state, local, territorial, tribal law enforcement and intelligence agencies. Task force members share intelligence and investigative leads and respond to threats and incidents.

    “We know from each potential crisis or thwarted attack that we cannot do this job alone,” said SAC Rothrock. “Each member of the North Texas JTTF brings unique skills and specialized resources from their agency to enhance our collective investigative capabilities. We are proud to work side-by-side with our partners in the fight against terrorism, and will continue to vigorously defend the Dallas Division’s territory.”

    The FBI’s JTTF model dates to 1979, when the New York Police Department and the FBI’s New York Field Office created a joint task force to tackle violent bank robberies. They imitated the model in 1980, when terrorist bombings, bomb threats, and other violence plagued the city, and announced the formation of the first JTTF in April 1980.

    “The JTTF has proven to be a world class model of what can be accomplished when law enforcement resources from federal, state, and local agencies converge to combat terrorism and disrupt the plans of evil actors throughout the United States,” said Eastern District of Texas Acting U.S. Attorney Abe McGlothin, Jr. “The JTTF has been called upon to investigate some of the most horrific acts of violence imaginable and we should all be thankful for the work the JTTF does daily to keep communities across the United States safe.”

    After the 9/11 attacks, FBI leadership directed all FBI field offices to establish a JTTF. In addition, the FBI established its National Joint Terrorism Task Force to support the local task forces in June of 2002. The NJTTF, at FBI Headquarters, enhances communication, coordination, and cooperation from partner agencies.

    “This Office depends on the critical work of the JTTF in keeping Americans safe,” said Acting U. S. Attorney Chad E. Meacham. “We applaud the JTTF’s decades of significant efforts in partnership with the USAO-NDTX.”

    Nationally, JTTFs have disrupted dozens of plots in the past four decades. Notable investigations in Dallas’ territory include:

    •    Hosam Maher Husein Smadi: Sentenced to 24 years in prison for his attempted bombing of a downtown Dallas skyscraper in September 2009. According to documents filed, Smadi knowingly took possession of a truck that contained a weapon of mass destruction, and while the bomb was inert when Smadi took possession of it, it was a readily-convertible weapon of mass destruction.

    •    Khalid Ali-M Aldawsari: Sentenced to life in prison for the attempted use of a weapon of mass destruction in connection with his 2011 purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure.

    •    Omer Kuzu: Pleaded guilty in 2020 to conspiring to provide material support to terrorism. In March 2019, Kuzu was captured by the Syrian Democratic Forces, alongside 1,500 suspected ISIS fighters.  He was handed over to FBI custody, returned to American soil, and charged with conspiring to provide material support to ISIS.  

    Report suspicious activity to 1-800-CALL-FBI (225-5324). You can also submit a tip online at tips.fbi.gov tips.fbi.gov.
     

    MIL Security OSI –

  • MIL-OSI Security: Former U.S. Army Intelligence Analyst Sentenced for Selling Sensitive Military Information to Individual Tied to Chinese Government

    Source: United States Attorneys General 1

    A former U.S. Army intelligence analyst was sentenced today to 84 months in prison for conspiring to collect and transmit national defense information, including sensitive, non-public U.S. military information, to an individual he believed was affiliated with the Chinese government.

    Korbein Schultz, 25, of Wills Point, Texas, pleaded guilty in August 2024 to conspiring to collect and transmit national defense information, unlawfully exporting controlled information to China, and accepting bribes in exchange of sensitive, non-public U.S. government information.

    “This defendant swore an oath to defend the United States — instead, he betrayed it for a payout and put America’s military and service members at risk,” said Attorney General Pamela Bondi. “The Justice Department remains vigilant against China’s efforts to target our military and will ensure that those who leak military secrets spend years behind bars.”

    “This sentencing is a stark warning to those who betray our country: you will pay a steep price for it,” said FBI Director Kash Patel. “The People’s Republic of China is relentless in its efforts to steal our national defense information, and service members are a prime target. The FBI and our partners will continue to root out espionage and hold those accountable who abandon their obligation to safeguard defense information from hostile foreign governments.”

    “Those who collaborate with America’s foreign adversaries put our country, and those who defend it, at grave risk and we will do whatever it takes to hold them accountable for their crimes,” said Acting U.S. Attorney Robert E. McGuire for the Middle District of Tennessee. “We will proudly stand in support of our men and women in uniform and work diligently to protect them from people like the defendant who would sell them out for a few bucks.”

    “Protecting classified information is paramount to our national security, and this sentencing reflects the ramifications when there is a breach of that trust,” said Brigadier General Rhett R. Cox, Commanding General of the Army Counterintelligence Command. “This Soldier’s actions put Army personnel at risk placing individual gain above personal honor. Army Counterintelligence Command, in close collaboration with the Department of Justice, the Federal Bureau of Investigation, and the Intelligence Community, remains steadfast in our commitment to safeguarding our nation’s secrets and urges all current and former Army personnel to report any suspicious contact immediately.”

    According to court documents, between May 2022 until his arrest in March 2024, Schultz engaged in an ongoing conspiracy to provide dozens of sensitive U.S. military documents — many containing export-controlled tactical and technical information — directly to a foreign national residing in the People’s Republic of China. Despite clear indications that this individual, who is referenced in the Indictment as Conspirator A, was likely connected to the Chinese government, the defendant continued the relationship in exchange for financial compensation. In exchange for approximately $42,000, Schultz provided documents and data related to U.S. military capabilities, including:

    • His Army unit’s operational order before it was deployed to Eastern Europe in support of NATO operations;
    • Lessons learned by the U.S. Army from the Ukraine/Russia conflict applicable to Taiwan’s defense;
    • Technical manuals for the HH-60 helicopter, F-22A fighter aircraft, and Intercontinental Ballistic Missile systems;
    • Information on Chinese military tactics and the People’s Liberation Army Rocket Force;
    • Details on U.S. military exercises in the Republic of Korea and the Philippines;
    • Documents concerning U.S. military satellites and missile defense systems like the High Mobility Artillery Rocket System (HIMARS) and Terminal High Altitude Area Defense (THAAD).
    • Tactics for countering unmanned aerial systems in large-scale combat operations.

    Conspirator A first contacted the defendant through a freelance web-based work platform shortly after the defendant received his Top Secret/Sensitive Compartmented Information (TS/SCI) clearance. Masquerading as a client from a geopolitical consulting firm, Conspirator A solicited the defendant to produce detailed analyses on U.S. military capabilities and planning, particularly in relation to Taiwan and the Russia-Ukraine conflict.

    As the relationship progressed, Conspirator A’s demands grew increasingly specific and sensitive — requesting technical manuals, operational procedures, and intelligence assessments. Conspirator A made explicit his interest in materials that were not publicly available and encouraged the defendant to seek out higher levels of classification, emphasizing “exclusiveness” and “CUI and better.”  Schultz agreed to obtain higher levels of classified information for Conspirator A in exchange for money.

    The defendant, fully aware of the grave national security implications, used his position and access to restricted databases — including closed U.S. government computer networks — to download and transmit at least 92 sensitive U.S. military documents.

    The case also revealed attempts by the defendant to recruit his friend and fellow Army intelligence analyst into the conspiracy. At the time, Schultz’s friend was assigned to the U.S. Department of Defense’s Indo-Pacific Command (INDOPACOM), which is the combatant command that covers China and its regional areas of influence. Schultz and Conspirator A discussed the need to recruit another person into their scheme who had better access to classified material. They agreed that such recruitment needed to be done in a “nice and slow fashion.”

    The FBI’s Nashville Field Office investigated the case, with valuable assistance from the U.S. Army Counterintelligence Command and the Department of Defense.

    Assistant U.S. Attorney Josh Kurtzman for the Middle District of Tennessee and Trial Attorneys Adam Barry and Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Convicted Sex Offender Indicted for Distributing Child Sexual Abuse Material

    Source: Office of United States Attorneys

    MINNEAPOLIS – Nicholas Lugo of Chaska, Minnesota, has been charged with distribution of child sexual abuse material (CSAM), announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, on July 3, 2024, Nicholas Richard Lugo, 25, distributed multiple CSAM videos over the internet. Lugo has a 2021 conviction in Hennepin County for first-degree criminal sexual conduct involving a minor.

    “Lugo is a child predator. He was convicted of sexually abusing a child.  And then—like so many sexual predators—went on to offend again,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “Minnesotans should have no tolerance for serial child sex offenders in our midst. The U.S. Attorney’s Office certainly doesn’t.  Defendants like Lugo who repeatedly prey on children should expect to see federal charges and do federal prison time.”

    Lugo is charged with one count of distribution child pornography.  At his arraignment hearing, Magistrate Judge Dulce J. Foster ordered that he remain in custody pending further court proceedings.

    This case is the result of an investigation by the Chaska Police Department, the Minnesota Bureau of Criminal Apprehension, and the FBI. It was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

    Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.

    An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI USA: Former U.S. Army Intelligence Analyst Sentenced for Selling Sensitive Military Information to Individual Tied to Chinese Government

    Source: US State of North Dakota

    A former U.S. Army intelligence analyst was sentenced today to 84 months in prison for conspiring to collect and transmit national defense information, including sensitive, non-public U.S. military information, to an individual he believed was affiliated with the Chinese government.

    Korbein Schultz, 25, of Wills Point, Texas, pleaded guilty in August 2024 to conspiring to collect and transmit national defense information, unlawfully exporting controlled information to China, and accepting bribes in exchange of sensitive, non-public U.S. government information.

    “This defendant swore an oath to defend the United States — instead, he betrayed it for a payout and put America’s military and service members at risk,” said Attorney General Pamela Bondi. “The Justice Department remains vigilant against China’s efforts to target our military and will ensure that those who leak military secrets spend years behind bars.”

    “This sentencing is a stark warning to those who betray our country: you will pay a steep price for it,” said FBI Director Kash Patel. “The People’s Republic of China is relentless in its efforts to steal our national defense information, and service members are a prime target. The FBI and our partners will continue to root out espionage and hold those accountable who abandon their obligation to safeguard defense information from hostile foreign governments.”

    “Those who collaborate with America’s foreign adversaries put our country, and those who defend it, at grave risk and we will do whatever it takes to hold them accountable for their crimes,” said Acting U.S. Attorney Robert E. McGuire for the Middle District of Tennessee. “We will proudly stand in support of our men and women in uniform and work diligently to protect them from people like the defendant who would sell them out for a few bucks.”

    “Protecting classified information is paramount to our national security, and this sentencing reflects the ramifications when there is a breach of that trust,” said Brigadier General Rhett R. Cox, Commanding General of the Army Counterintelligence Command. “This Soldier’s actions put Army personnel at risk placing individual gain above personal honor. Army Counterintelligence Command, in close collaboration with the Department of Justice, the Federal Bureau of Investigation, and the Intelligence Community, remains steadfast in our commitment to safeguarding our nation’s secrets and urges all current and former Army personnel to report any suspicious contact immediately.”

    According to court documents, between May 2022 until his arrest in March 2024, Schultz engaged in an ongoing conspiracy to provide dozens of sensitive U.S. military documents — many containing export-controlled tactical and technical information — directly to a foreign national residing in the People’s Republic of China. Despite clear indications that this individual, who is referenced in the Indictment as Conspirator A, was likely connected to the Chinese government, the defendant continued the relationship in exchange for financial compensation. In exchange for approximately $42,000, Schultz provided documents and data related to U.S. military capabilities, including:

    • His Army unit’s operational order before it was deployed to Eastern Europe in support of NATO operations;
    • Lessons learned by the U.S. Army from the Ukraine/Russia conflict applicable to Taiwan’s defense;
    • Technical manuals for the HH-60 helicopter, F-22A fighter aircraft, and Intercontinental Ballistic Missile systems;
    • Information on Chinese military tactics and the People’s Liberation Army Rocket Force;
    • Details on U.S. military exercises in the Republic of Korea and the Philippines;
    • Documents concerning U.S. military satellites and missile defense systems like the High Mobility Artillery Rocket System (HIMARS) and Terminal High Altitude Area Defense (THAAD).
    • Tactics for countering unmanned aerial systems in large-scale combat operations.

    Conspirator A first contacted the defendant through a freelance web-based work platform shortly after the defendant received his Top Secret/Sensitive Compartmented Information (TS/SCI) clearance. Masquerading as a client from a geopolitical consulting firm, Conspirator A solicited the defendant to produce detailed analyses on U.S. military capabilities and planning, particularly in relation to Taiwan and the Russia-Ukraine conflict.

    As the relationship progressed, Conspirator A’s demands grew increasingly specific and sensitive — requesting technical manuals, operational procedures, and intelligence assessments. Conspirator A made explicit his interest in materials that were not publicly available and encouraged the defendant to seek out higher levels of classification, emphasizing “exclusiveness” and “CUI and better.”  Schultz agreed to obtain higher levels of classified information for Conspirator A in exchange for money.

    The defendant, fully aware of the grave national security implications, used his position and access to restricted databases — including closed U.S. government computer networks — to download and transmit at least 92 sensitive U.S. military documents.

    The case also revealed attempts by the defendant to recruit his friend and fellow Army intelligence analyst into the conspiracy. At the time, Schultz’s friend was assigned to the U.S. Department of Defense’s Indo-Pacific Command (INDOPACOM), which is the combatant command that covers China and its regional areas of influence. Schultz and Conspirator A discussed the need to recruit another person into their scheme who had better access to classified material. They agreed that such recruitment needed to be done in a “nice and slow fashion.”

    The FBI’s Nashville Field Office investigated the case, with valuable assistance from the U.S. Army Counterintelligence Command and the Department of Defense.

    Assistant U.S. Attorney Josh Kurtzman for the Middle District of Tennessee and Trial Attorneys Adam Barry and Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI: Northrim BanCorp Earns $13.3 Million, or $2.38 Per Diluted Share, in First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, April 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, compared to $10.9 million, or $1.95 per diluted share, in the fourth quarter of 2024, and $8.2 million, or $1.48 per diluted share, in the first quarter a year ago. The increase in first quarter 2025 profitability as compared to the first quarter a year ago was primarily the result of an increase in purchased receivable income, higher net interest income, increased mortgage banking income, and a benefit for the provision for credit losses, which were only partially offset by higher other operating expenses. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

    Dividends per share in the first quarter of 2025 increased to $0.64 per share as compared to $0.62 per share in the fourth quarter of 2024 and $0.61 per share in the first quarter of 2024.

    “Our record first quarter earnings are the result of Northrim’s focus on profitable, market share driven growth,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Our strong financial performance is due to our history of investing in our people and banking infrastructure to consistently deliver ‘Superior Customer First Service’. We remain confident that our dedication to serving our customers and communities will support future growth.”

    First Quarter 2025 Highlights:

    • Net interest income in the first quarter of 2025 increased 1% to $31.3 million compared to $30.8 million in the fourth quarter of 2024 and increased 18% compared to $26.4 million in the first quarter of 2024.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.61% for the first quarter of 2025, up 14-basis points from the fourth quarter of 2024 and up 39-basis points from the first quarter a year ago.
    • Return on average assets (“ROAA”) was 1.76% and return on average equity (“ROAE”) was 19.70% for the first quarter of 2025. ROAA was 1.19% and ROAE was 13.84% for the first quarter of 2024.
    • Portfolio loans were $2.12 billion at March 31, 2025, down slightly from the preceding quarter and up 17% from a year ago. Portfolio loans in the first quarter of 2025 decreased from the preceding quarter primarily due to the reclassification of $100 million of consumer mortgages previously held as residential real estate loans to loans held for sale. The consumer mortgages are expected to be sold in the second quarter of 2025 to reduce the concentration of residential real estate loans and provide additional liquidity for future commercial and construction loan growth.
    • Total deposits were $2.78 billion at March 31, 2025, up 4% from the preceding quarter, and up 14% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 4% year-over-year to $742.6 million at March 31, 2025 and represent 27% of total deposits.
    • The average cost of interest-bearing deposits was 2.01% at March 31, 2025, down from 2.15% at December 31, 2024 and 2.13% at March 31, 2024.
    • Mortgage loan originations were $121.6 million in the first quarter of 2025, down from $185.9 million in the fourth quarter of 2024 and up from $101.7 million in the first quarter a year ago. Mortgage loans funded for sale were $108.5 million in the first quarter of 2025, compared to $162.5 million in the fourth quarter of 2024 and $84.3 million in the first quarter of 2024.
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Total assets $ 3,140,960   $ 3,041,869   $ 2,963,392   $ 2,821,668   $ 2,759,560  
    Total portfolio loans $ 2,124,330   $ 2,129,263   $ 2,007,565   $ 1,875,907   $ 1,811,135  
    Total deposits $ 2,777,977   $ 2,680,189   $ 2,625,567   $ 2,463,806   $ 2,434,083  
    Total shareholders’ equity $ 279,756   $ 267,116   $ 260,050   $ 247,200   $ 239,327  
    Net income $ 13,324   $ 10,927   $ 8,825   $ 9,020   $ 8,199  
    Diluted earnings per share $ 2.38   $ 1.95   $ 1.57   $ 1.62   $ 1.48  
    Return on average assets   1.76 %   1.43 %   1.22 %   1.31 %   1.19 %
    Return on average shareholders’ equity   19.70 %   16.32 %   13.69 %   14.84 %   13.84 %
    NIM   4.55 %   4.41 %   4.29 %   4.24 %   4.16 %
    NIMTE*   4.61 %   4.47 %   4.35 %   4.30 %   4.22 %
    Efficiency ratio   64.47 %   66.96 %   66.11 %   68.78 %   68.93 %
    Total shareholders’ equity/total assets   8.91 %   8.78 %   8.78 %   8.76 %   8.67 %
    Tangible common equity/tangible assets*   7.41 %   7.23 %   8.28 %   8.24 %   8.14 %
    Book value per share $ 50.67   $ 48.41   $ 47.27   $ 44.93   $ 43.52  
    Tangible book value per share* $ 41.47   $ 39.17   $ 44.36   $ 42.03   $ 40.61  
    Dividends per share $ 0.64   $ 0.62   $ 0.62   $ 0.61   $ 0.61  
    Common stock outstanding   5,520,892     5,518,210     5,501,943     5,501,562     5,499,578  
                                   

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 13.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in February of 2025 was 4.7% compared to the U.S. rate of 4.1%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.6% or 5,200 jobs between February of 2024 and February of 2025.

    According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 7.5% through February 2025 compared to the prior year, up 600 direct jobs. The Construction sector added 1,000 positions for a year-over-year growth rate of 6.1% in February of 2025. The larger Health Care sector grew by 1,400 jobs for an annual growth rate of 3.4%. Transportation, Warehousing and Utilities added 1,100 jobs for a 5% growth rate. Leisure and Hospitality increased 500 jobs year-over-year through February of 2025, up 1.6%.

    The Government sector grew by 600 jobs for 0.7% growth, adding 100 Federal jobs, and 500 State positions in Alaska over the same period. Declining sectors between February 2024 and February 2025 were Manufacturing (primarily seafood processing) shrinking 500 positions (-4.4%), Financial Activities, down 100 jobs (-0.9%), and Retail lost 100 jobs (-0.3%).

    Alaska’s seasonally adjusted personal income was $56.5 billion in the fourth quarter of 2024 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the fourth quarter of 4.7% for Alaska, compared to the national average of 4.6%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $650 million increase in personal income in the fourth quarter in Alaska came from a $446 million increase in net earnings from wages, $154 million growth in government transfer receipts, and a $49 million increase in investment income.

    Alaska’s Gross State Product (“GSP”) in 2024, reached $70 billion for the first time according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and 4% annualized in the fourth quarter of 2024, placing Alaska third best of all 50 states for the quarter. The average U.S. GDP growth rate was 2.8% for the year and 2.4% in the fourth quarter of 2024. Alaska’s real GSP improvement in the fourth quarter of 2024 was primarily caused by growth in the Mining, Oil & Gas; Transportation & Warehousing; and to a lesser extent the Health Care sector. Construction played a larger role in the annual state GSP performance.

    Based on data from the U.S. Chamber of Commerce, Alaska exported $5.2 billion in goods to foreign countries in 2023. China is the largest importer of Alaska’s products at $1.2 billion, followed by Japan at $710 million and Korea at $702 million in 2023. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores $1.5 billion, and primary metals at $780 million in 2023. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run.”

    According to the US Bureau of Labor Statistics, the Consumer Price Index, or CPI, for the U.S. increased 2.8% between February of 2024 and February of 2025. In Alaska, the rate of increase was 2.9% for the same time period. Food and beverage; housing rents and mortgage rates; transportation; and medical care costs are the largest causes for inflation. Declining motor fuel prices, new and used car prices, and household furnishing costs have helped moderate inflationary pressures in Alaska.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was $76.39 in January, $74.03 in February and $73.39 in March of 2025. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024. Through nine months of the fiscal year 2025, production has averaged slightly above the State of Alaska forecast of 467 thousand bpd. In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka oil field and ConocoPhillips is developing the new Willow oil field. There are also a number of smaller new oil fields in Alaska’s North Slope that are contributing to the State of Alaska’s production growth estimates.

    The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of February 28, 2025 the funds value was $81.35 billion. According to the DOR it is scheduled to contribute $3.7 billion to the Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,109, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. These two markets represent where the vast majority of the residential lending activity for Northrim Bank (the”Bank”) occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the first quarter of 2025, Northrim generated a ROAA of 1.76% and a ROAE of 19.70%, compared to 1.43% and 16.32%, respectively, in the fourth quarter of 2024 and 1.19% and 13.84%, respectively, in the first quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 1% to $31.3 million in the first quarter of 2025 compared to $30.8 million in the fourth quarter of 2024 and increased 18% compared to $26.4 million in the first quarter of 2024. Interest expense on deposits decreased to $9.9 million in the first quarter of 2025 compared to $10.6 million in the fourth quarter of 2024 and increased compared to $9.2 million in the first quarter of 2024.

    NIMTE* was 4.61% in the first quarter of 2025 up from 4.47% in the preceding quarter and 4.22% in the first quarter a year ago. NIMTE* increased 39 basis points in the first quarter of 2025 compared to the first quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, slightly higher yields on those assets, and a decrease in costs on interest-bearing liabilities. The weighted average interest rate for new loans booked in the first quarter of 2025 was 7.30% compared to 7.23% in the fourth quarter of 2024 and 7.84% in the first quarter a year ago. The yield on the investment portfolio in the first quarter of 2025 increased to 2.97% from 2.84% in the fourth quarter of 2024 and 2.82% in the first quarter of 2024. “We are starting to see some benefit from lower deposit costs that benefit our net interest margin and outweigh the impact of the recent Fed rate cuts on our loan portfolio, which we could continue to see for the next couple of quarters,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.23% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of December 31, 2024.

    Provision for Credit Losses

    Northrim recorded a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit to the provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. This compares to a provision for credit losses of $1.2 million in the fourth quarter of 2024, and provision for credit losses of $149,000 in the first quarter a year ago.

    The benefit to the provision for unfunded commitments in the first quarter of 2025 was primarily due to a decrease in estimated loss rates due to changes in mix that was only partially offset by management’s assessment of economic conditions and estimated funding rates. The decrease to the provision for credit losses on loans in the first quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of the reclassification of $100 million in mortgage loans to loans held for sale, which provided a benefit to the provision of $2.2 million in the Home Mortgage Lending segment for the first quarter of 2025. This benefit was only partially offset by a $1.5 million provision for credit losses in the Home Mortgage Lending segment due to changes in the Company’s loss rate regression models for home mortgage loans. Additionally, the Company recorded $1.7 million net benefit for credit losses in the Community Banking segment related to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions, an increase for higher loan balances in other loan segments, and specific provisions for credit losses in the Specialty Finance segment. These items reduced the overall benefit by $1.3 million. The provision for credit losses related to the Specialty Finance segment of $666,000 in the first quarter of 2025 consisted of a $621,000 provision for credit losses on loans and a $46,000 provision for credit losses on purchased receivables and represents management’s estimate of collateral shortfalls for four loans.

    Nonperforming loans, net of government guarantees, increased during the quarter to $8.0 million at March 31, 2025, compared to $7.5 million at December 31, 2024, and $5.3 million at March 31, 2024.

    The allowance for credit losses on loans was 262% of nonperforming loans, net of government guarantees, at the end of the first quarter of 2025, compared to 292% three months earlier and 333% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $14.2 million, or 31% of total first quarter 2025 revenues, as compared to $13.0 million, or 30% of revenues in the fourth quarter of 2024, and $7.8 million, or 23% of revenues in the first quarter of 2024. The increase in other operating income in the first quarter of 2025 as compared to the preceding quarter and the first quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. The fair market value of marketable equity securities decreased $50,000 in the first quarter of 2025 compared to a decrease of $364,000 in the prior quarter and an increase of $314,000 in the first quarter of 2024. Additionally, the increase in other operating income in the first quarter of 2025 as compared to the fourth quarter of 2024 was partially offset by a decrease in mortgage banking income due to a lower volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.

    Other Operating Expenses

    Operating expenses were $29.3 million in the first quarter of 2025, compared to $29.4 million in the fourth quarter of 2024, and $23.6 million in the first quarter of 2024. The decrease in other operating expenses in the first quarter of 2025 compared to the fourth quarter of 2024 was primarily due to a decrease in salaries and other personnel expense, including $623,000 in lower mortgage commissions expense due to lower mortgage volume and a decrease in profit share expense. Professional fees decreased in the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to one-time deal costs associated with the acquisition of Sallyport of $1.1 million recorded in the fourth quarter of 2024. These decreases were only partially offset by $600,000 in compensation expense for Sallyport acquisition payments and an increase in other operating expense for a decrease in fair value of loans held for sale of $1.2 million as a result of reclassifying the consumer mortgages discussed above. The increase in other operating expenses in the first quarter of 2025 compared to the first quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, the increase in other operating expense for the decrease in fair value of loans held for sale, as well as an increase in other real estate owned, or OREO, expense due to a gain on sale recorded in the first quarter of 2024 for proceeds received related to a government guarantee on an OREO property in prior years. Total other operating expense increased $2.7 million in the Specialty Finance segment in the first quarter of 2025 compared to the first quarter of 2024 from the addition of Sallyport on October 31, 2024.

    Income Tax Provision

    In the first quarter of 2025, Northrim recorded $4.3 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.4 million, or 17.8% in the fourth quarter of 2024 and $2.3 million, or 21.9% in the first quarter a year ago. The increase in the tax rate in the first quarter of 2025 as compared to the fourth and first quarters of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

    Community Banking

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $28.2 million in the first quarter of 2025, compared to $27.6 million in the fourth quarter of 2024 and $24.2 million in the first quarter of 2024. Net interest income increased slightly in the first quarter of 2025 as compared to the fourth quarter of 2024 mostly due to lower interest expense on deposits and borrowings and higher interest income on loans. These increases were only partially offset by lower interest income on investments.

    Other operating expenses in the Community Banking segment totaled $18.6 million in the first quarter of 2025, down $535,000 or 3% from $19.1 million in the fourth quarter of 2024, and up $1.4 million or 8% from $17.2 million in the first quarter a year ago. The decrease in the first quarter of 2025 as compared to the prior quarter was mostly due to decreases in salaries and other personnel expense, marketing expense, and professional and outside services expense. The increase in the first quarter of 2025 as compared to the first quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the first quarter of 2024 for proceeds received related to a government guarantee on an OREO property sold in prior years, as well as increases in data processing expense, insurance expense, salaries and other personnel expense, and marketing expense.

    The following table provides highlights of the Community Banking segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Net interest income $ 28,151   $ 27,643   $ 25,928   $ 24,318   $ 24,215  
    (Benefit) provision for credit losses   (1,768 )   771     1,492     (184 )   197  
    Other operating income   2,703     2,535     3,507     2,450     2,468  
    Other operating expense   18,581     19,116     18,723     18,068     17,178  
    Income before provision for income taxes   14,041     10,291     9,220     8,884     9,308  
    Provision for income taxes   3,253     1,474     2,133     1,786     1,966  
    Net income $ 10,788   $ 8,817   $ 7,087   $ 7,098   $ 7,342  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Community Banking $ 1.93   $ 1.58   $ 1.26   $ 1.27   $ 1.32  
                                   

    Home Mortgage Lending

    During the first quarter of 2025, mortgage loans funded for sale were $108.5 million, compared to $162.5 million in the fourth quarter of 2024, and $84.3 million in the first quarter of 2024.

    During the first quarter of 2025, the Bank purchased loans of $13.1 million from its subsidiary, Residential Mortgage. of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.39%, as compared to $23.4 million and 6.30% in the fourth quarter of 2024, and $17.4 million and 6.65% in the first quarter of 2024. Net interest income contributed $3.0 million to total Home Mortgage Lending revenue in the first quarter of 2025, down from $3.3 million in the prior quarter, and up from $2.2 million in the first quarter a year ago.

    The income statement impact from the reclassification of the consumer mortgages was a decrease in provision for credit losses of $2.2 million and a $1.2 million decrease in the fair value of mortgages.

    The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $122 million total production in the first quarter of 2025, 19% of $186 million total production in the fourth quarter of 2024, and 19% of $102 million total production in the first quarter of 2024.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $855,000 during the first quarter of 2025 compared to an increase of $873,000 for the fourth quarter of 2024 and a decrease of $25,000 for the first quarter of 2024. Mortgage servicing revenue decreased to $2.7 million in the first quarter of 2025 from $2.8 million in the prior quarter and increased from $1.6 million in the first quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the first quarter of 2025, the Company’s servicing portfolio increased $24.0 million compared to a $294.1 million increase in the fourth quarter of 2024, which included the purchase of the AHFC servicing portfolio of $235.6 million, and an increase of $15.5 million in the first quarter of 2024.

    As of March 31, 2025, Northrim serviced 6,391 loans in its $1.48 billion home-mortgage-servicing portfolio, a 2% increase compared to the $1.46 billion serviced as of the end of the fourth quarter of 2024, and a 40% increase from the $1.06 billion serviced a year ago.

    The following table provides highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Mortgage commitments $ 68,258   $ 32,299   $ 77,591   $ 88,006   $ 56,208  
               
    Mortgage loans funded for sale $ 108,499   $ 162,530   $ 209,960   $ 152,339   $ 84,324  
    Mortgage loans funded for investment   13,061     23,380     38,087     29,175     17,403  
    Total mortgage loans funded $ 121,560   $ 185,910   $ 248,047   $ 181,514   $ 101,727  
    Mortgage loan refinances to total fundings   11 %   11 %   6 %   6 %   4 %
    Mortgage loans serviced for others $ 1,484,714   $ 1,460,720   $ 1,166,585   $ 1,101,800   $ 1,060,007  
               
    Net realized gains on mortgage loans sold $ 2,740   $ 3,747   $ 5,079   $ 3,188   $ 1,980  
    Change in fair value of mortgage loan commitments, net   660     (665 )   60     391     386  
    Total production revenue   3,400     3,082     5,139     3,579     2,366  
    Mortgage servicing revenue   2,696     2,847     2,583     2,164     1,561  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1   (322 )   1,372     (566 )   239     289  
    Other2   (533 )   (499 )   (402 )   (320 )   (314 )
    Total mortgage servicing revenue, net   1,841     3,720     1,615     2,083     1,536  
    Other mortgage banking revenue   170     238     293     222     129  
    Total mortgage banking income $ 5,411   $ 7,040   $ 7,047   $ 5,884   $ 4,031  
               
    Net interest income $ 3,046   $ 3,280   $ 2,941   $ 2,775   $ 2,232  
    Provision (benefit) for credit losses   (307 )   305     571     64     (48 )
    Mortgage banking income   5,411     7,040     7,047     5,884     4,031  
    Other operating expense   7,650     7,198     7,643     6,697     6,086  
    Income (loss) before provision for income taxes   1,114     2,817     1,774     1,898     225  
    Provision (benefit) for income taxes   310     842     497     532     63  
    Net income (loss) $ 804   $ 1,975   $ 1,277   $ 1,366   $ 162  
               
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Home Mortgage Lending $ 0.14   $ 0.35   $ 0.23   $ 0.25   $ 0.03  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Specialty Finance

    The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport Commercial Finance. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income and other fee income.

    The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the first quarter of 2025 was $1.3 million compared to $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

    Average purchased receivables and loan balances at Sallyport were $59.9 million for the first quarter of 2025, and yielded 35.8%. This included the recognition of $899,000 in fee income collected during the quarter related to two nonperforming receivables that was previously deferred and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

    The following table provides highlights of the Specialty Finance segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Purchased receivable income $ 6,150   $ 3,526   $ 1,033   $ 1,243   $ 1,345  
    Other operating income   (64 )   (68 )   —     —     —  
    Interest income   596     407     158     170     212  
    Total revenue   6,682     3,865     1,191     1,413     1,557  
    Provision for credit losses   666     125     —     —     —  
    Compensation expense – SCF acquisition payments   600     —     —     —     —  
    Other operating expense   2,500     3,063     362     429     374  
    Interest expense   496     489     185     210     212  
    Total expense   4,262     3,677     547     639     586  
    Income before provision for income taxes   2,420     188     644     774     971  
    Provision for income taxes   688     53     183     218     276  
    Net income Specialty Finance segment $ 1,732   $ 135   $ 461   $ 556   $ 695  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,583,055     5,558,580     5,554,930  
    Diluted earnings per share attributable to Specialty Finance $ 0.31   $ 0.02   $ 0.08   $ 0.10   $ 0.13  
                                   

    Balance Sheet Review

    Northrim’s total assets were $3.14 billion at March 31, 2025, up 3% from the preceding quarter and up 14% from a year ago. Northrim’s loan-to-deposit ratio was 76% at March 31, 2025, down from 79% at December 31, 2024, and up from 74% at March 31, 2024.

    At March 31, 2025, our liquid assets, investments, and loans maturing within one year were $1.11 billion and our funds available for borrowing under our existing lines of credit were $571.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.78 billion in the first quarter of 2025, down slightly from $2.79 billion in the fourth quarter of 2024 and up 9% from $2.56 billion in the first quarter a year ago. The average yield on interest-earning assets was 6.10% in the first quarter of 2025, up slightly from 6.02% in the preceding quarter and up from 5.69% in the first quarter a year ago.

    Average investment securities decreased to $523.8 million in the first quarter of 2025, compared to $565.8 million in the fourth quarter of 2024 and $670.9 million in the first quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.97% for the first quarter of 2025, up from 2.84% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at March 31, 2025, was approximately 2.4 years compared to approximately 2.7 years at March 31, 2024. As of March 31, 2025, $70.0 million of available for sale securities with a weighted average yield of 2.25% are scheduled to mature in the next six months, $80.7 million with a weighted average yield of 1.16% are scheduled to mature in six months to one year, and $168.6 million with a weighted average yield of 1.67% are scheduled to mature in the following year, representing a total of $319.4 million or 11% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $2.8 million in the first quarter of 2025 resulting in total unrealized loss, net of tax, of $5.5 million compared to $8.3 million at December 31, 2024, and $17.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $1.1 million at March 31, 2025, compared to $1.0 million at December 31, 2024, and $3.4 million a year ago.

    Average interest bearing deposits in other banks decreased to $38.0 million in the first quarter of 2025 from $72.2 million in the fourth quarter of 2024 and decreased from $61.6 million in the first quarter of 2024, as cash was used to fund the loan growth and provide liquidity.

    Loans held for sale increased to $159.6 million at March 31, 2025, compared to $60.0 million at December 31, 2024, and $43.8 million a year ago, largely due to the reclassification of $100 million consumer mortgage loans from portfolio loans in the first quarter of 2025. Management expects to sell these loans with servicing retained which will result in an increase to mortgage servicing rights when the sale closes in the second quarter of 2025.

    Portfolio loans were $2.12 billion at March 31, 2025, consistent with the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.94 billion at March 31, 2025, up $77.4 million or 4% from the preceding quarter and up 22% from a year ago. This increase in the first quarter of 2025 was diversified throughout the loan portfolio including nonowner-occupied commercial real estate and multi-family loans increasing by $70.8 million, commercial loans increasing by $55.4 million, and commercial real estate owner-occupied loans increasing $10.4 million from the preceding quarter. These increases were partially offset by a $57.9 million decrease in construction loans. Average portfolio loans in the first quarter of 2025 were $2.17 billion, which was up 5% from the preceding quarter and up 21% from a year ago. Yields on average portfolio loans in the first quarter of 2025 decreased to 6.89% from 6.93% in the fourth quarter and increased from 6.75% in the first quarter of 2024. The decrease in the yield on portfolio loans in the first quarter of 2025 compared to the fourth quarter of 2024 is primarily due to a change in the mix of loans as construction loans decreased and commercial real estate loans increased as a percentage of the overall portfolio. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the first quarter of 2025 as compared to 7.40% in the fourth quarter of 2024 and 8.39% in the first quarter of 2024.

    Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $37.6 million at March 31, 2025. At March 31, 2025, Northrim had 23 relationships totaling $520.2 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.78 billion at March 31, 2025, up 4% from $2.68 billion at December 31, 2024, and up 14% from $2.43 billion a year ago. “The increase in deposits in the first quarter of 2025 was not consistent with our customers’ normal business cycles as we normally see decreases in balances during the first quarter, however deposits from new relationships in the quarter were more than able to offset our normal seasonal deposit movement,” said Ballard. At March 31, 2025, 74% of total deposits were held in business accounts and 26% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $61,000 as of March 31, 2025. Northrim had 27 customers with balances over $10 million as of March 31, 2025, which accounted for $694.7 million, or 26%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 4% from the prior year to $742.6 million at March 31, 2025. Demand deposits remained consistent at 27% of total deposits at both March 31, 2025 and December 31, 2024 and were down from 29% of total deposits at March 31, 2024. Average interest-bearing deposits were up 2% to $2.00 billion with an average cost of 2.01% in the first quarter of 2025, compared to $1.95 billion and an average cost of 2.15% in the fourth quarter of 2024, and up 16% compared to $1.73 billion and an average cost of 2.13% in the first quarter of 2024. Uninsured deposits totaled $1.04 billion or 37% of total deposits as of March 31, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

    Shareholders’ equity was $279.8 million, or $50.67 book value per share, at March 31, 2025, compared to $267.1 million, or $48.41 book value per share, at December 31, 2024 and $239.3 million, or $43.52 book value per share, a year ago. Tangible book value per share* was $41.47 at March 31, 2025, compared to $39.17 at December 31, 2024, and $40.61 per share a year ago. The increase in shareholders’ equity in the first quarter of 2025 as compared to the fourth quarter of 2024 was largely the result of earnings of $13.3 million and an increase in the fair value of the available for sale securities portfolio, which increased $5.5 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the first quarter of 2025 and currently has no plans to continue to repurchase shares. Tangible common equity to tangible assets* was 7.41% as of March 31, 2025, compared to 7.23% as of December 31, 2024 and 8.14% as of March 31, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.76% at March 31, 2025, compared to 9.76% at December 31, 2024, and 11.55% at March 31, 2024.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $12.3 million at March 31, 2025, up from $11.6 million at December 31, 2024 and $5.4 million a year ago. Of the NPAs at March 31, 2025, $4.5 million are attributable to the Community Banking segment and $7.6 million are attributable to the Specialty Finance segment.

    Net adversely classified loans were $20.4 million at March 31, 2025, as compared to $9.6 million at December 31, 2024, and $7.2 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at March 31, 2025 as compared to the prior quarter and prior year is mostly attributable to two commercial relationships totaling $9.4 million. Net loan recoveries were $34,000 in the first quarter of 2025, compared to net loan recoveries of $51,000 in the fourth quarter of 2024, and net loan recoveries of $42,000 in the first quarter of 2024. Additionally, Northrim had three new loan modifications to borrowers experiencing financial difficulty totaling $813,000, for a total of 14 totaling $3.8 million, net of government guarantees in the first quarter of 2025.

    Northrim had $140.7 million, or 7% of portfolio loans, in the Healthcare sector, $122.5 million, or 6% of portfolio loans, in the Tourism sector, $110.9 million, or 5% of portfolio loans, in the Accommodations sector, $91.2 million, or 4% of portfolio loans, in the Retail sector, $85.7 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $75.5 million, or 4% of portfolio loans, in the Fishing sector, and $60.2 million, or 3% in the Restaurants and Breweries sector as of March 31, 2025.

    Northrim estimates that $106.3 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of March 31, 2025, and $1.5 million of these loans are adversely classified. As of March 31, 2025, Northrim has an additional $32.6 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    www.northrim.com

    Forward-Looking Statement
    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

    https://www.uschamber.com/assets/static/maps/international-trade/AK_Chamber_2024.pdf

    https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

    Income Statement      
    (Dollars in thousands, except per share data) Three Months Ended
    (Unaudited) March 31, December 31, March 31,
        2025     2024     2024  
    Interest Income:      
    Interest and fees on loans $ 37,470   $ 37,059   $ 30,450  
    Interest on portfolio investments   3,675     3,844     4,520  
    Interest on deposits in banks   416     883     838  
    Total interest income   41,561     41,786     35,808  
    Interest Expense:      
    Interest expense on deposits   9,935     10,568     9,180  
    Interest expense on borrowings   329     377     181  
    Total interest expense   10,264     10,945     9,361  
    Net interest income   31,297     30,841     26,447  
           
    (Benefit) provision for credit losses   (1,409 )   1,201     149  
    Net interest income after provision for credit losses   32,706     29,640     26,298  
           
    Other Operating Income:      
    Purchased receivable income   6,150     3,526     1,345  
    Mortgage banking income   5,411     7,040     4,031  
    Bankcard fees   1,074     1,148     917  
    Service charges on deposit accounts   677     622     549  
    Unrealized gain (loss) on marketable equity securities   (50 )   (364 )   314  
    Other income   938     949     688  
    Total other operating income   14,200     13,033     7,844  
           
    Other Operating Expense:      
    Salaries and other personnel expense   17,223     18,254     15,417  
    Data processing expense   3,104     3,108     2,659  
    Occupancy expense   1,889     1,893     1,962  
    Professional and outside services   1,115     1,967     755  
    Insurance expense   1,017     894     779  
    Marketing expense   672     965     513  
    Compensation expense – SCF acquisition payments   600     —     —  
    OREO expense, net rental income and gains on sale   3     2     (391 )
    Other operating expense   3,708     2,294     1,944  
    Total other operating expense   29,331     29,377     23,638  
           
    Income before provision for income taxes   17,575     13,296     10,504  
    Provision for income taxes   4,251     2,369     2,305  
    Net income $ 13,324   $ 10,927   $ 8,199  
           
    Basic EPS $ 2.41   $ 1.99   $ 1.49  
    Diluted EPS $ 2.38   $ 1.95   $ 1.48  
    Weighted average shares outstanding, basic   5,519,998     5,509,078     5,499,578  
    Weighted average shares outstanding, diluted   5,608,102     5,597,889     5,554,930  
                       
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) March 31, December 31, March 31,
        2025     2024     2024  
           
    Assets:      
    Cash and due from banks $ 29,671   $ 42,101   $ 30,159  
    Interest bearing deposits in other banks   35,852     20,635     50,205  
    Investment securities available for sale, at fair value   463,096     478,617     592,479  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   8,669     8,719     13,467  
    Investment in Federal Home Loan Bank stock   5,342     5,331     3,236  
    Loans held for sale   159,603     59,957     43,818  
           
    Portfolio loans   2,124,330     2,129,263     1,811,135  
    Allowance for credit losses, loans   (20,922 )   (22,020 )   (17,533 )
    Net portfolio loans   2,103,408     2,107,243     1,793,602  
    Purchased receivables, net   95,489     74,078     37,698  
    Mortgage servicing rights, at fair value   26,814     26,439     20,055  
    Other real estate owned, net   —     —     —  
    Premises and equipment, net   37,070     37,757     40,836  
    Lease right of use asset   7,632     7,455     8,867  
    Goodwill and intangible assets   50,824     50,968     15,967  
    Other assets   80,740     85,819     72,421  
    Total assets $ 3,140,960   $ 3,041,869   $ 2,759,560  
           
    Liabilities:      
    Demand deposits $ 742,560   $ 706,225   $ 714,244  
    Interest-bearing demand   1,187,465     1,108,404     889,581  
    Savings deposits   256,650     250,900     246,902  
    Money market deposits   193,842     196,290     209,785  
    Time deposits   397,460     418,370     373,571  
    Total deposits   2,777,977     2,680,189     2,434,083  
    Other borrowings   13,136     23,045     13,569  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,682     7,487     8,884  
    Other liabilities   52,099     53,722     53,387  
    Total liabilities   2,861,204     2,774,753     2,520,233  
           
    Shareholders’ Equity:      
    Total shareholders’ equity   279,756     267,116     239,327  
    Total liabilities and shareholders’ equity $ 3,140,960   $ 3,041,869   $ 2,759,560  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Commercial loans $ 573,593   27 %   $ 518,148   24 %   $ 492,414   24 %   $ 495,781   26 %   $ 475,220   26 %
    Commercial real estate:                            
    Owner occupied properties   430,442   20 %     420,060   20 %     412,827   20 %     383,832   20 %     372,507   20 %
    Nonowner occupied and multifamily properties   690,277   32 %     619,431   29 %     584,302   31 %     551,130   30 %     529,904   30 %
    Residential real estate:                            
    1-4 family properties secured by first liens   188,219   9 %     270,535   13 %     248,514   12 %     222,026   12 %     218,552   12 %
    1-4 family properties secured by junior liens & revolving secured by first liens   53,836   3 %     48,857   2 %     45,262   2 %     41,258   2 %     35,460   2 %
    1-4 family construction   34,017   2 %     39,789   2 %     39,794   2 %     29,510   2 %     27,751   2 %
    Construction loans   156,211   7 %     214,068   10 %     185,362   9 %     154,009   8 %     153,537   8 %
    Consumer loans   7,424   — %     7,562   — %     7,836   — %     6,679   — %     6,444   — %
    Subtotal   2,134,019         2,138,450         2,016,311         1,884,225         1,819,375    
    Unearned loan fees, net   (9,689 )       (9,187 )       (8,746 )       (8,318 )       (8,240 )  
    Total portfolio loans $ 2,124,330       $ 2,129,263       $ 2,007,565       $ 1,875,907       $ 1,811,135    
                                 
    Composition of Deposits                        
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Demand deposits $ 742,560   27 %   $ 706,225   27 %   $ 763,595   29 %   $ 704,471   29 %   $ 714,244   29 %
    Interest-bearing demand   1,187,465   43 %     1,108,404   41 %     979,238   37 %     906,010   36 %     889,581   37 %
    Savings deposits   256,650   9 %     250,900   9 %     245,043   9 %     238,156   10 %     246,902   10 %
    Money market deposits   193,842   7 %     196,290   7 %     204,821   8 %     195,159   8 %     209,785   9 %
    Time deposits   397,460   14 %     418,370   16 %     435,870   17 %     420,010   17 %     373,571   15 %
    Total deposits $ 2,777,977       $ 2,680,189       $ 2,628,567       $ 2,463,806       $ 2,434,083    
                                                     

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality March 31,   December 31,   March 31,
        2025       2024       2024  
    Nonaccrual loans – Community Banking $ 4,274     $ 4,337     $ 4,472  
    Nonaccrual loans – Home Mortgage Lending   221       233       263  
    Nonaccrual loans – Specialty Finance   3,573       2,946       525  
    Nonaccrual loans – Total   8,068       7,516       5,260  
    Loans 90 days past due and accruing – Community Banking   —       17       —  
    Loans 90 days past due and accruing – Total   —       17       —  
    Total nonperforming loans – Community Banking   4,274       4,354       4,472  
    Total nonperforming loans – Home Mortgage Lending   221       233       263  
    Total nonperforming loans – Specialty Finance   3,573       2,946       525  
    Total nonperforming loans – Total   8,068       7,533       5,260  
    Nonperforming loans guaranteed by gov’t – Community Banking   80       —       —  
    Nonperforming loans guaranteed by gov’t – Total   80       —       —  
    Net nonperforming loans – Community Banking   4,194       4,354       4,472  
    Net nonperforming loans – Home Mortgage Lending   221       233       263  
    Net nonperforming loans – Specialty Finance   3,573       2,946       525  
    Net nonperforming loans – Total   7,988       7,533       5,260  
                 
    Repossessed assets – Community Banking   297       297       —  
    Repossessed assets – Total   297       297       —  
                 
    Nonperforming purchased receivables – Specialty Finance   4,007       3,768       183  
                 
    Net nonperforming assets – Community Banking   4,491       4,651       4,472  
    Net nonperforming assets – Home Mortgage Lending   221       233       263  
    Net nonperforming assets – Specialty Finance   7,580       6,714       708  
    Net nonperforming assets – Total $ 12,292     $ 11,598     $ 5,443  
                 
    Adversely classified loans, net of gov’t guarantees – Community Banking $ 16,592     $ 6,332     $ 6,374  
    Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending   252       358       307  
    Adversely classified loans, net of gov’t guarantees – Specialty Finance   3,573       2,946       525  
    Adversely classified loans, net of gov’t guarantees – Total $ 20,417     $ 9,636     $ 7,206  
                 
    Special mention loans, net of gov’t guarantees – Community Banking $ 14,496     $ 19,769     $ 9,976  
    Special mention loans, net of gov’t guarantees – Home Mortgage Lending   637       —       —  
    Special mention loans, net of gov’t guarantees – Total $ 15,133     $ 19,769     $ 9,976  
                           
    Asset Quality, Continued March 31, December 31, March 31,
        2025     2024     2024  
    Nonperforming loans, net of government guarantees / portfolio loans   0.38 %   0.35 %   0.29 %
    Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees   0.40 %   0.38 %   0.31 %
    Nonperforming assets, net of government guarantees / total assets   0.39 %   0.38 %   0.20 %
    Nonperforming assets, net of government guarantees / total assets net of government guarantees   0.41 %   0.40 %   0.20 %
                 
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans   0.04 %   0.11 %   0.03 %
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees   0.04 %   0.11 %   0.04 %
                 
    Allowance for credit losses for loans / portfolio loans   0.98 %   1.03 %   0.97 %
    Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees   1.06 %   1.10 %   1.03 %
    Allowance for credit losses for loans / nonperforming loans, net of government guarantees   262 %   292 %   333 %
                 
    Gross loan charge-offs for the quarter – Community Banking $ 50   $ 44   $ 25  
    Gross loan charge-offs for the quarter – Specialty Finance   —     105     —  
    Gross loan charge-offs for the quarter – Total   50     149     25  
                 
    Gross loan recoveries for the quarter – Community Banking   (84 )   (200 )   (67 )
    Gross loan recoveries for the quarter – Home Mortgage Lending   —     —     —  
    Gross loan recoveries for the quarter – Specialty Finance   —     —     —  
    Gross loan recoveries for the quarter – Total $ (84 ) $ (200 ) $ (67 )
                 
    Net loan (recoveries) charge-offs for the quarter – Community Banking $ (34 ) $ (156 ) $ (42 )
    Net loan (recoveries) charge-offs for the quarter – Specialty Finance   —     (105 )   —  
    Net loan (recoveries) charge-offs for the quarter – Total $ (34 ) $ (51 ) $ (42 )
                 
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   — %   — %   — %
                 
    Allowance for credit losses for purchased receivables / purchased receivables   3.72 %   4.69 %   — %
                 
    Net purchased receivable charge-offs (recoveries) for the quarter $ —   $ —   $ —  
                 

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
        Average     Average     Average
      Average Tax Equivalent   Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets                
    Interest bearing deposits in other banks $ 37,969   4.44 %   $ 72,212   4.72 %   $ 61,561   5.38 %
    Portfolio investments   523,753   2.97 %     565,785   2.84 %     670,937   2.82 %
    Loans held for sale   46,223   5.86 %     83,304   5.97 %     32,635   6.13 %
    Portfolio loans   2,173,425   6.89 %     2,066,216   6.93 %     1,793,425   6.75 %
    Total interest-earning assets   2,781,370   6.10 %     2,787,517   6.02 %     2,558,558   5.69 %
    Nonearning assets   293,415         251,364         201,137    
    Total assets $ 3,074,785       $ 3,038,881       $ 2,759,695    
                     
    Liabilities and Shareholders’ Equity                
    Interest-bearing deposits $ 2,002,594   2.01 %   $ 1,954,495   2.15 %   $ 1,731,923   2.13 %
    Borrowings   37,081   3.55 %     29,251   3.95 %     23,944   2.95 %
    Total interest-bearing liabilities   2,039,675   2.04 %     1,983,746   2.18 %     1,755,867   2.14 %
                     
    Noninterest-bearing demand deposits   697,534         738,911         705,134    
    Other liabilities   63,348         49,815         60,407    
    Shareholders’ equity   274,228         266,409         238,287    
    Total liabilities and shareholders’ equity $ 3,074,785       $ 3,038,881       $ 2,759,695    
    Net spread   4.06 %     3.84 %     3.55 %
    NIM   4.55 %     4.41 %     4.16 %
    NIMTE*   4.61 %     4.47 %     4.22 %
    Cost of funds   1.52 %     1.59 %     1.53 %
    Average portfolio loans to average interest-earning assets   78.14 %       74.12 %       70.10 %  
    Average portfolio loans to average total deposits   80.49 %       76.71 %       73.59 %  
    Average non-interest deposits to average total deposits   25.83 %       27.43 %       28.93 %  
    Average interest-earning assets to average interest-bearing liabilities   136.36 %       140.52 %       145.71 %  
                                 

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)          
      March 31, 2025   December 31, 2024   March 31, 2024
    Book value per share $ 50.67     $ 48.41     $ 43.52  
    Tangible book value per share* $ 41.47     $ 39.17     $ 40.61  
    Total shareholders’ equity/total assets   8.91 %     8.78 %     8.67 %
    Tangible Common Equity/Tangible Assets*   7.41 %     7.23 %     8.14 %
    Tier 1 Capital / Risk Adjusted Assets   9.76 %     9.76 %     11.55 %
    Total Capital / Risk Adjusted Assets   10.62 %     10.94 %     12.47 %
    Tier 1 Capital / Average Assets   8.02 %     7.68 %     9.01 %
    Shares outstanding   5,520,892       5,518,210       5,499,578  
    Total unrealized loss on AFS debt securities, net of income taxes $ (5,452 )   $ (8,295 )   $ (17,205 )
    Total unrealized gain on derivatives and hedging activities, net of income taxes $ 1,097     $ 1,272     $ 1,172  
                           
    Profitability Ratios                            
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    For the quarter:                            
    NIM 4.55 %   4.41 %   4.29 %   4.24 %   4.16 %
    NIMTE* 4.61 %   4.47 %   4.35 %   4.30 %   4.22 %
    Efficiency ratio 64.47 %   66.96 %   66.11 %   68.78 %   68.93 %
    Return on average assets 1.76 %   1.43 %   1.22 %   1.31 %   1.19 %
    Return on average equity 19.70 %   16.32 %   13.69 %   14.84 %   13.84 %

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Net interest income $ 31,297     $ 30,841     $ 28,842     $ 27,053     $ 26,447  
    Divided by average interest-bearing assets   2,781,370       2,787,517       2,674,291       2,568,266       2,558,558  
    Net interest margin (“NIM”)2   4.55 %     4.41 %     4.29 %     4.24 %     4.16 %
                       
    Net interest income $ 31,297     $ 30,841     $ 28,842     $ 27,053     $ 26,447  
    Plus: reduction in tax expense related to tax-exempt interest income   379       379       385       378       379  
      $ 31,676     $ 31,220     $ 29,227     $ 27,431     $ 26,826  
    Divided by average interest-bearing assets   2,781,370       2,787,517       2,674,291       2,568,266       2,558,558  
    NIMTE2   4.61 %     4.47 %     4.35 %     4.30 %     4.22 %
                                           

    2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Divided by shares outstanding   5,521       5,518       5,502       5,502       5,500  
    Book value per share $ 50.68     $ 48.41     $ 47.26     $ 44.93     $ 43.52  
                                           
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Less: goodwill and intangible assets   50,824       50,968       15,967       15,967       15,967  
      $ 228,932     $ 216,148     $ 244,083     $ 231,233     $ 223,360  
    Divided by shares outstanding   5,521       5,518       5,502       5,502       5,500  
    Tangible book value per share $ 41.47     $ 39.17     $ 44.36     $ 42.03     $ 40.61  
                                           

    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

    Northrim BanCorp, Inc. March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
                       
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Total assets   3,140,960       3,041,869       2,963,392       2,821,668       2,759,560  
    Total shareholders’ equity to total assets   8.91 %     8.78 %     8.78 %     8.76 %     8.67 %
    Northrim BanCorp, Inc. March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Total shareholders’ equity $ 279,756     $ 267,116     $ 260,050     $ 247,200     $ 239,327  
    Less: goodwill and other intangible assets, net   50,824       50,968       15,967       15,967       15,967  
    Tangible common shareholders’ equity $ 228,932     $ 216,148     $ 244,083     $ 231,233     $ 223,360  
                       
    Total assets $ 3,140,960     $ 3,041,869     $ 2,963,392     $ 2,821,668     $ 2,759,560  
    Less: goodwill and other intangible assets, net   50,824       50,968       15,967       15,967       15,967  
    Tangible assets $ 3,090,136     $ 2,990,901     $ 2,947,425     $ 2,805,701     $ 2,743,593  
    Tangible common equity ratio   7.41 %     7.23 %     8.28 %     8.24 %     8.14 %
                                           
    Contact:     Mike Huston, President, CEO, and COO
    (907) 261-8750
    Jed Ballard, Chief Financial Officer
    (907) 261-3539
         

    Note Transmitted on GlobeNewswire on April 23, 2025, at 12:15 pm Alaska Standard Time.

    The MIL Network –

  • MIL-OSI Security: Grove Woman Sentenced for Strangling 70-Year-Old Neighbor to Death

    Source: Office of United States Attorneys

    TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Kellie Lee Crawford, 57, for Voluntary Manslaughter in Indian Country. Judge Frizzell ordered Crawford to 180 months imprisonment, followed by three years of supervised release.

    According to court documents, in September 2021, Crawford was drinking with her 70-year-old neighbor, Richard Strade. Crawford was under the influence of methamphetamine and unreasonably believed that Strade was attempting to assault her sexually. She admitted to repeatedly striking Strade in the head with a cookie jar lid and a plastic hanger before strangling him to death.

    Crawford is a citizen of the Potawatomi Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

    The FBI, the Oklahoma State Bureau of Investigations, and the Delaware County Sheriff’s Office investigated the case. Assistant U.S. Attorney Stacey Todd prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Video: Inside the FBI Podcast: The Hazardous Devices School

    Source: Federal Bureau of Investigation (FBI) (video statements)

    On this episode of the Inside the FBI Podcast, we’ll give you a rare look inside the Bureau’s Hazardous Devices School to learn how the FBI molds the world’s foremost civilian public-safety bomb techs; what it takes to join their humble, but elite, ranks; and what inspires these public servants to put their lives on the line on a daily basis to keep communities safe. For a full transcript and additional resources, visit https://www.fbi.gov/news/podcasts. You can learn more about the Bureau’s Critical Incident Response Group’s mission and programs—including the Hazardous Devices School—at https://www.fbi.gov/tactics.
    —————————————————
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    https://www.youtube.com/watch?v=tuJLIS_D43Q

    MIL OSI Video –

  • MIL-OSI Security: FBI’s 2024 Internet Crime Complaint Center Report Released

    Source: Federal Bureau of Investigation FBI Crime News (b)

    EXINGTON, SC—The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has released its latest annual report. The 2024 Internet Crime Report combines information from 859,532 complaints of suspected Internet crime and details reported losses exceeding $16 billion—a 33% increase in losses from 2023.

    According to the 2024 report, South Carolina ranked 22 out of all states in the number of complaints received by the public. South Carolinians reported $146 million in losses, a $27 million increase from the prior year. As a group, people 60 and older submitted the greatest number of complaints and suffered the most severe financial losses at $58.5 million.

    The top three cyber crimes in South Carolina, by number of complaints, reported by victims in 2024 were: Extortion (1,384), phishing/spoofing (1,259), and personal data breaches (924).

    The top three cyber crimes in South Carolina reported by financial losses were: Business e-mail compromises ($40.8 million), up from $30.6 million in 2023; investment fraud ($38.4 million), down from $42.5 million the previous year; and confidence/romance scams ($15.1 million), up from $11.3 million in 2023.

    “Cyber crime remains a serious and growing threat to South Carolinians, with victims losing millions of dollars annually,” said Reid Davis, Acting Special Agent in Charge of the FBI Columbia field office. “The FBI is fully committed to identifying and bringing cybercriminals to justice and empowering the public with the critical tools and awareness. One effort is our outreach to South Carolina seniors where we engage with groups about current online threats and provide them with security measures they can take to stay ahead of the evolving cyber landscape.”

    To promote public awareness, the IC3 produces an annual report to aggregate and highlight the data provided by the public. The quality of the data is a direct reflection of the information the public provides through the IC3 website. The IC3 standardizes the data by categorizing each complaint and analyzes the data to identify and forecast trends in Internet crime. The annual report helps the FBI develop effective relationships with industry partners and share information for investigative and intelligence purposes for law enforcement and public awareness.

    The IC3, which was established in May 2000, houses nine million complaints from the public in its database and continues to encourage anyone who thinks they’ve been the victim of a cyber-enabled crime, regardless of dollar loss, to file a complaint through the IC3 website. The more comprehensive complaints the FBI receives, the more effective it will be in helping law enforcement gain a more accurate picture of the extent and nature of Internet-facilitated crimes.

    The FBI recommends that everyone frequently review consumer and industry alerts published by the IC3. If you or your business are a victim of an Internet crime, immediately notify all financial institutions involved in the relevant transactions, submit a complaint to www.ic3.gov, contact your nearest FBI field office, and contact local law enforcement.

    Learn more about the history of IC3 by listening to this previously released podcast: FBI podcast episode “Inside the FBI: IC3 Turns 20.”

    The full 2024 Internet Crime Report can be found here

    MIL Security OSI –

  • MIL-OSI Security: Thoreau Woman Pleads Guilty to Involuntary Manslaughter in Fatal Drunk Driving Incident on Navajo Nation

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Thoreau woman has pleaded guilty to involuntary manslaughter after driving while intoxicated and fatally striking John Doe with her vehicle following an altercation.

    According to court records, on the morning of May 28, 2023, Nora Abeita, 50, an enrolled member of the Navajo Nation, and several others, including the victim, John Doe, consumed alcohol together. After an altercation with John Doe, Abeita attempted to leave the residence with a friend. While driving away, Abeita struck John Doe with their vehicle. She did not immediately realize she had run over him until alerted by others. John Doe died from his injuries.

    Abeita’s blood alcohol concentration was measured at .16 approximately five hours after the incident—more than double the legal limit in both New Mexico and the Navajo Nation.

    At sentencing, Abeita faces up to eight years in prison. Upon her release from prison, Abeita will be subject to up to three years of supervised release.

    U.S. Attorney Ryan G. Ellison and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Navajo Nation Department of Public Safety investigated this case with assistance from the Navajo Nation Police Department and the Gallup Resident Agency of the FBI Albuquerque Field Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Zuni Man Sentenced for Armed Standoff and Shootout with Law Enforcement

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Zuni Pueblo man has been sentenced to 12 years in prison following an armed standoff with law enforcement.

    There is no parole in the federal system.

    According to court documents, on July 6, 2024, law enforcement responded to a disturbance at a residence in Zuni, where Eric Bowannie, 28, barricaded himself inside his home and fired multiple rounds at responding Zuni Police Department officers. During the incident, Bowannie charged an officer with an ax, retrieved a shotgun and a rifle, and repeatedly fired at officers positioned outside the residence. FBI agents arrived on scene and also came under fire as they attempted to negotiate a peaceful surrender.

    After a prolonged standoff and multiple exchanges of gunfire, Bowannie attempted to flee the area but was apprehended by local law enforcement without further incident. A subsequent search of the property recovered 57 spent casings and five spent shotgun shells.

    On November 13, 2024, Bowannie pleaded guilty to assault with a dangerous weapon and to using, carrying, and brandishing a firearm during a crime of violence.

    Upon his release from prison, Bowannie will be subject to three years of supervised release.

    U.S. Attorney Ryan Ellison and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. U.S. Attorney Ryan Ellison and Assistant United States Attorney Kirk Williams are prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI Security: Sex Offender Sentenced to 20 Years in Federal Prison for Child Exploitation Offense, Threats

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that GREGORY BUTTS, 54, formerly of Sprague, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 240 months of imprisonment, followed by 15 years of supervised release, for a child exploitation offense and related threats.

    According to court documents and statements made in court, in April 2016, Butts was convicted in Connecticut state court of illegal sexual contact with a child.

    In November 2020, family and friends of two missing juveniles in Colorado posted information about the missing juveniles on social media pages and included a phone number asking the public to call with information.  Butts, with his own phone number blocked, called the number and spoke to a female friend of the missing juveniles, who recorded the conversation.  Butts stated that he was with the missing juveniles and had had sexual contact with them.  He threatened to harm the missing juveniles if the conversation were recorded or if law enforcement were contacted, and threatened the female friend who answered the phone.  He then said that he would return the missing juveniles if the female friend would have sexual intercourse with him.  Shortly after the juveniles had been reported missing, they returned home.  They were not harmed and had not been kidnapped.

    Investigators determined that the call emanated from a lightly-populated area in Sprague, Connecticut, and that Butts was a registered sex offender living in the area who was on probation following a state conviction for illegal sexual contact with a minor.  After a Connecticut probation officer identified Butts’ voice on the recording, probation officers searched Butts’ residence and another residence where he also had been staying and seized a computer, storage devices, multiple cell phones, and other items.

    Forensic analysis of the seized items revealed more than 10,000 images and videos of child pornography, and downloaded conversations Butts had with minors on Snapchat and other social media applications.  In the chats, Butts engaged in sexually explicit conversations, made numerous threats, and demanded, and sometimes received, sexually explicit photos.

    Butts has been detained since March 4, 2022.  On January 17, 2025, he pleaded guilty to possession of a child pornography.

    This investigation was conducted by the Federal Bureau of Investigation in New Haven, Connecticut and Loveland, Colorado, with the assistance of the Connecticut Office of Adult Probation, Connecticut State Police, and the Connecticut Forensic Science Laboratory.  The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel E. Cummings.

    Acting U.S. Attorney Silverman thanked the State’s Attorney’s Office for the Judicial District of New London for its close cooperation in investigating and prosecuting this matter.

    This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    To report cases of child exploitation, please visit www.cybertipline.com

    MIL Security OSI –

  • MIL-OSI Security: FBI Releases Annual Internet Crime Report

    Source: Federal Bureau of Investigation FBI Crime News (b)

    The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has released its latest annual report. The 2024 Internet Crime Report combines information from 859,532 complaints of suspected internet crime and details reported losses exceeding $16 billion—a 33% increase in losses from 2023.

    The top three cyber crimes, by number of complaints reported by victims in 2024, were phishing/spoofing, extortion, and personal data breaches. Victims of investment fraud, specifically those involving cryptocurrency, reported the most losses—totaling over $6.5 billion.

    According to the 2024 report, the most complaints were received from California, Texas, and Florida. As a group, people over the age of 60 suffered the most losses at nearly $5 billion and submitted the greatest number of complaints.

    “Reporting is one of the first and most important steps in fighting crime so law enforcement can use this information to combat a variety of frauds and scams,” said FBI Director, Kash Patel. “The IC3, which is celebrating its 25th anniversary this year, is only as successful as the reports it receives; that’s why it’s imperative that the public immediately report suspected cyber-enabled criminal activity to the FBI.”

    To promote public awareness, the IC3 produces an annual report to aggregate and highlight the data provided by the general public. The quality of the data is a direct reflection of the information the public provides through the IC3 website. The IC3 standardizes the data by categorizing each complaint and analyzes the data to identify and forecast trends in internet crime. The annual report helps the FBI develop effective relationships with industry partners and share information for investigative and intelligence purposes for law enforcement and public awareness.

    The IC3, which was established in May 2000, houses nine million complaints from the public in its database and continues to encourage anyone who thinks they’ve been the victim of a cyber-enabled crime, regardless of dollar loss, to file a complaint through the IC3 website. The more comprehensive complaints the FBI receives, the more effective it will be in helping law enforcement gain a more accurate picture of the extent and nature of internet-facilitated crimes.

    The FBI recommends that everyone frequently review consumer and industry alerts published by the IC3. If you or your business are a victim of an internet crime, immediately notify all financial institutions involved in the relevant transactions, submit a complaint to www.ic3.gov, contact your nearest FBI field office, and contact local law enforcement.

    Learn more about the history of IC3 by listening to this previously released FBI podcast episode: Inside the FBI: IC3 Turns 20.

    The full 2024 Internet Crime Report can be found here: ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf

    MIL Security OSI –

  • MIL-OSI Security: St. Louis Man Admits Bank Robbery and Attempted Bank Robbery

    Source: Federal Bureau of Investigation (FBI) State Crime News

    ST. LOUIS – A St. Louis man admitted robbing a St. Louis bank in 2024 and trying to rob the same bank three months later.

    Isaac Perry, 39, pleaded guilty in U.S. District Court to one count of bank robbery and one count of attempted bank robbery. He admitted entering a bank on Loughborough Avenue in south St. Louis on June 25, 2024, and handing a note to a bank employee. The note read, “I nee[d] you to hand over 10,000 in cash if not it aint gone end good please.” Perry drew a red heart around the word “please.” He left the bank with about $340.

    On Oct. 3, 2024, Perry returned, and again handed a note to a bank employee. The note said, “This is a stick up I need you to give me 6,000 dollars in all hundreds in make it quick.” The note had another heart. The bank employee told Perry that she had activated an alarm and police were on the way.  Perry fled the bank but was identified in photos of the robbery that were released to the public.

    Perry is scheduled to be sentenced on July 29. Each charge carries a potential penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine.

    The FBI and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Nichole Frankenberg is prosecuting the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Albuquerque Man Sentenced in Federal Firearms Case Adopted from Second Judicial District Attorney’s Office

    Source: Office of United States Attorneys

    ALBUQUERQUE – A previously convicted felon has been sentenced to 84 months in prison after violently assaulting his pregnant partner and threatening her with a loaded rifle during a domestic incident.

    There is no parole in the federal system.

    According to court records, on August 13, 2023, Bernalillo County Sheriff’s Office deputies responded to a 911 call reporting a violent domestic assault at a residence in the South Valley. The victim, who was six months pregnant, reported that Marlando Luis Martinez, 36, had physically assaulted her throughout the night, including punching her, striking her with a whip, choking her multiple times to near unconsciousness, and threatening her with an AR-15 rifle, which he discharged near her face. Deputies observed visible injuries on the victim, including welts, bruising, and a cut lip.

    The victim recounted to responding officers that Martinez threatened to kill her and her unborn child if she contacted law enforcement. After Martinez fell asleep, the victim escaped and sought help from a neighbor. Deputies transported her to safety and documented her injuries. A subsequent search of the residence uncovered multiple firearms, ammunition, and evidence corroborating the victim’s account, including a rifle with a round in the chamber and a bullet hole in the headboard.

    The loaded rifle, ammunition and extended magazine
    Second rifle, ammunition and extended magazine

    Martinez was apprehended later that day with assistance from the U.S. Marshals Service Task Force. He was arrested without incident and federally charged with being a felon in possession of a firearm and ammunition, having previously been convicted of aggravated battery against a household member.

    Upon his release from prison, Martinez will be subject to three years of supervised release.

    U.S. Attorney Ryan Ellison, Bernalillo County District Attorney Sam Bregman Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Bernalillo County Sheriff’s Office. Special Assistant U.S. Attorney Peter Haynes is prosecuting this case as part of an agreement with the Second Judicial District Attorney’s Office.

    Through the agreement, Assistant District Attorneys are designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. The SAUSA from the Second Judicial District Attorney’s Office screens felony criminal complaints filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has reviewed almost 3,000 cases and has charged more than 300 criminal cases pursuant to this program.

    The United States Attorney’s Office has similar agreements with the New Mexico Department of Justice and the First Judicial District Attorney’s Office and plans to expand the program throughout the state. 

    MIL Security OSI –

  • MIL-OSI Video: Director of Kansas City Bureau of Investigation Describes Role of JTTF

    Source: Federal Bureau of Investigation (FBI) (video statements)

    Tony Mattivi, director of the Kansas City Bureau of Investigation, describes the role of FBI Kansas City’s Joint Terrorism Task Force.

    More at: https://www.fbi.gov/news/stories/celebrating-45-years-of-fbi-joint-terrorism-task-forces
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    https://www.youtube.com/watch?v=2wPMzFd-omU

    MIL OSI Video –